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

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

a. the real rate of interest is declining.

b. the inflation rates in the two countries are equal.

c. purchasing power parity exists.

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

e. inflation rates are historically high.

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