Suppose the interest parity condition holds.Also assume that the one-year interest rate in the United States is 5% and that the one-year interest rate in Canada is 6%.What does this imply about the current versus future expected exchange rate (for the U.S.and Canadian dollars)? Explain.

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The Answer of Suppose the interest parity condition holds.Also assume that the one-year interest rate in the United States is 5% and that the one-year interest rate in Canada is 6%.What does this imply about the current versus future expected exchange rate (for the U.S.and Canadian dollars)? Explain.

Suppose the Interest Parity Condition Holds