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Homework answers / question archive / Suppose US is your home country and Europe is foreign country and you have spare $100 for a year to investment on domestic deposit or Euro deposit

Suppose US is your home country and Europe is foreign country and you have spare $100 for a year to investment on domestic deposit or Euro deposit

Economics

Suppose US is your home country and Europe is foreign country and you have spare $100 for a year to investment on domestic deposit or Euro deposit. Explain with the help of diagrams if US interest rate will decline in the near future, but no change in current interest rates, how can it affect current exchange rate? (diagram is required)

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