Uncovered interest rate parity

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Reference no: EM131852113

1. If real exchange rate, R(t), is less than 1, it implies

A: Relative purchasing power of US consumers for foreign-goods improves

B: Competitiveness of US multinationals in foreign markets declines

C: Competitiveness of US multinationals in foreign markets improves

2. Uncovered interest rate parity (or UIP) is the same as

A: International Fisher effect

B: Covered interest rate parity

C: Purchasing power parity

Reference no: EM131852113

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