Multiple Choice
The international Fisher effect (IFE) suggests that the foreign currency will appreciate when:
A) the current home nominal interest rate exceeds the current foreign nominal interest rate.
B) the current home real interest rate exceeds the current foreign real interest rate.
C) the current home inflation rate exceeds the current foreign nominal interest rate.
D) the current foreign inflation rate exceeds the current home inflation rate.
Correct Answer:
Verified
Correct Answer:
Verified
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