Question: Question 1 1 pts Consider two countries A and B. Imagine that in the first country the interest rate is equal to 5% and in

 Question 1 1 pts Consider two countries A and B. Imagine

Question 1 1 pts Consider two countries A and B. Imagine that in the first country the interest rate is equal to 5% and in the second country the interest rate is equal to 2%. If we assume that capital is perfectly mobile and that investors are risk neutral we can expect that the currency of country A will be appreciating at the rate of 3% relative to the currency of country B will be depreciating at the rate of 3% relative the currency of country B O maintain its value relative to the currency of country B o undershooting its long run value

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