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Q. What is the interest parity condition?
Answer: The circumstance that the expected returns on deposits of any two currencies are equal when measured in the same currency is called the interest parity condition. It involve that potential holders of foreign currency deposits view them as equally desirable assets that is risk is assumed away. In the notational forms:
R$ = RE + (Ee $/E - E$/E) / E$/E.
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Revisions of Conventional Trade Theory
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diagram
I need a research essay about the effects socially and economically of nationalization of the YPF with 8 pages. How much it costs?
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how is exchange rate determined?
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