Question: 20. The concept that the difference in interest rates between two countries is equal to the percentage difference between the forward exchange rate and the

 20. The concept that the difference in interest rates between two

20. The concept that the difference in interest rates between two countries is equal to the percentage difference between the forward exchange rate and the spot exchange rate is called: A. exchange rate equilibrium. B. exchange rate parity. C. interest rate equilibrium. D. interest rate parity. E. foreign equalization

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