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Business, 27.11.2019 07:31 cfonse11

If the expected proportionate change in the nominal exchange rate, measured in units of domestic currency per unit of foreign currency, is 2 % and the domestic interest rate is 6 %, then according to the uncovered interest parity condition, the foreign interest rate should be equal to:
select one:
a. 6 % - 2 % = 4 %
b. 6 % + 2 % = 8 %
c. 6 % ÷ 2 % = 3 %
d. 6 % x 2 % = 12 %

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