If the rate of inflation in all of the world's currency markets rises from 5% to 7%,this will tend to make forward exchange rates move toward
A)smaller premiums or larger discounts in relation to the dollar
B)larger premiums or smaller discounts in relation to the dollar
C)no change on average
D)parity

Question

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The Answer of If the rate of inflation in all of the world's currency markets rises from 5% to 7%,this will tend to make forward exchange rates move toward
A)smaller premiums or larger discounts in relation to the dollar
B)larger premiums or smaller discounts in relation to the dollar
C)no change on average
D)parity

If the Rate of Inflation in All of the World's