Real interest parity indicates that, when PPP and UIP hold:
A) nominal interest rates are equal across countries.
B) inflation rates are equal across countries.
C) real interest rates are equal across countries.
D) nominal interest rates vary across countries.

Question

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The Answer of Real interest parity indicates that, when PPP and UIP hold:
A) nominal interest rates are equal across countries.
B) inflation rates are equal across countries.
C) real interest rates are equal across countries.
D) nominal interest rates vary across countries.

Real Interest Parity Indicates That, When PPP and UIP Hold