Question: Please answer the question by computer, so i can see it clearly, thank you!!! TRUE/FALSE. Explain your answer if FALSE: 1(a) The long-term condition states

Please answer the question by computer, so i can see it clearly, thank you!!!

TRUE/FALSE. Explain your answer if FALSE:

1(a) The long-term condition states that interest rate differentials between countries must on average equal to the expected depreciation of the domestic currency.

1(b) In order to have full control over domestic interest rates and allow free capital movements, a country must accept a floating exchange rate.

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