Assuming the same financial market transaction costs and, Business Economics

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Assuming the same financial market transaction costs and

Assuming the same financial market transaction costs and risks, will funds tend to move toward the U.S. or Japan if the U.S. interest rate is 5%, the Japanese interest rate is 2%, and there is a forward discount on the dollar of 2%? How ill this effect CIP between the two nations? Explain

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Business Economics: Assuming the same financial market transaction costs and

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