Question: The forward rate is most apt to equal the spot rate when: Multiple Choice the real rate of interest is declining. the inflation rates in

The forward rate is most apt to equal the spot rate when:

Multiple Choice

  • the real rate of interest is declining.

  • the inflation rates in the two countries are equal.

  • purchasing power parity exists.

  • the real rates of interest in the two countries are equal.

  • inflation rates are historically high.

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