Question: Given that home expected inflation rate exceeds foreign expected inflation, P. Power Parity implies: a.interest rates in both countries will be the same b.home currency

Given that home expected inflation rate exceeds foreign expected inflation, P. Power Parity implies:

a.interest rates in both countries will be the same

b.home currency is selling at a forward premium

c.foreign currency is expected to depreciate

d.home currency is expected to depreciate

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