Problem
{Real interest rate parity} Answer the following based on the real interest rates parity result:
1. Briefly, what is the real interest parity? Is this a long-run or short-run results?
2. Real interest parity is the outcome of two other "parity conditions". Name them and provide a tonnula for each. Use dollars and euros in your equations.
3. Derive the real interest parityr from the two equations you listed before.