Assumes that an item costs $100 in the U. S. and the exchange rate between the U. S. and Canada is: $1 = C$1.27. Which one of the following concepts supports the idea that the item that sells for $100 in the U. S. is currently selling in Canada for $127?
a. Uncovered interest rate parity.
b. Purchasing power parity
c. Interest rate parity
d. International fisher effect
e. Unbiased forward rates condition
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Assumes that an item costs $100 in the U. S. and the exchange rate between the U. S. and Canada is:...
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