If PPP and uncovered interest parity hold, then the long-run real rate of interest in each nation:
A) will never change.
B) will equalize.
C) will increase.
D) will decrease.

Question

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The Answer of If PPP and uncovered interest parity hold, then the long-run real rate of interest in each nation:
A) will never change.
B) will equalize.
C) will increase.
D) will decrease.

If PPP and Uncovered Interest Parity Hold, Then the Long-Run