Question: 12. Interest rate differentials between two countries reflect A. Expected exchange rate changes. B. Differential risk of investing in the two countries. C. The fact

12. Interest rate differentials between two countries reflect A. Expected exchange rate changes. B. Differential risk of investing in the two countries. C. The fact that there is no link between national interest ra D. (A) and (B) of the above. E. None of the above

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