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Predict the Change of Exchange Rate

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The Economist reports that the interest rate per annum is 5.93% in the U.S and 70.00% in Turkey,in the October 23, 1999 issue. Based on the reported interest rates, how would you predict the change of the exchange rate between the U.S. dollar and the Turkish lira?

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Solution Summary

Uses US dollar and Turkish Lira from 1999

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