When domestic currency deposits and foreign currency deposits are imperfect substitutes, the right-hand side of the interest parity condition equation 1) is added a term (p) that measures the risk...

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When domestic currency deposits and foreign currency deposits are imperfect<br>substitutes, the right-hand side of the interest parity condition equation<br>1) is added a term (p) that measures the risk premium on the domestic currency<br>deposits.<br>2) is added a term (p) that measures the risk premium on the foreign currency<br>deposits.<br>3) is subtracted a term (p) that measures the risk premium on the foreign<br>currency deposits.<br>is multiplied by a term (p) that measures the risk premium on the foreign<br>O 4)<br>currency deposits.<br>

Extracted text: When domestic currency deposits and foreign currency deposits are imperfect substitutes, the right-hand side of the interest parity condition equation 1) is added a term (p) that measures the risk premium on the domestic currency deposits. 2) is added a term (p) that measures the risk premium on the foreign currency deposits. 3) is subtracted a term (p) that measures the risk premium on the foreign currency deposits. is multiplied by a term (p) that measures the risk premium on the foreign O 4) currency deposits.

Jun 11, 2022

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When domestic currency deposits and foreign currency deposits are imperfect substitutes, the right-hand side of the interest parity condition equation 1) is added a term (p) that measures the risk...

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