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    International Financial Management
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    Exam 8: Relationships Among Inflation, Interest Rates, and Exchange Rates
  5. Question
    The IFE Theory Suggests That Foreign Currencies with Relatively High
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The IFE Theory Suggests That Foreign Currencies with Relatively High

Question 46

Question 46

True/False

The IFE theory suggests that foreign currencies with relatively high interest rates will appreciate because the high nominal interest rates reflect expected inflation.

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