Which of the following is not true regarding IRP, PPP, and the IFE?
A) IRP suggests that a currency's spot rate will change according to interest rate differentials.
B) PPP suggests that a currency's spot rate will change according to inflation differentials.
C) The IFE suggests that a currency's spot rate will change according to interest rate differentials.
D) All of the above are true.
Correct Answer:
Verified
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