Foreıgn Trade Deneme Sınavı Sorusu #1407190

Which of the following states that the domestic interest rate is equal to the total of foreign interest rate and to the expected rate of change in the foreign exchange rate?


The interest parity condition

The law on one price

Purchasing power parity

Spot exchange rate

Real foreign exchange rate


Yanıt Açıklaması:

The interest parity condition  states that the domestic interest rate is equal to the total of foreign interest rate and to the expected rate of change in the foreign exchange rate.

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