Solved: How would such a tax alter the analysis of the interest, Microeconomics

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How would such a tax alter the analysis of the interest

Imagine that everyone in the world pays a tax of t percent on interest earnings and on any capital gains due to exchange rate changes. How would such a tax alter the analysis of the interest parity condition? How does your answer change if the tax applies to interest earnings but not to capital gains, which are untaxed?

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Microeconomics: How would such a tax alter the analysis of the interest

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