Identify the trend that holds interest rate parity condition and explain the reason for Country’s C dollar that would not appreciate or depreciate against Country U’s dollar, if the Fed raises the interest rate when Country C’s interest remains the same.

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Chapter 26, Problem 21APA

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Identify the trend that holds interest rate parity condition and explain the reason for Country’s C dollar that would not appreciate or depreciate against Country U’s dollar, if the Fed raises the interest rate when Country C’s interest remains the same.

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