Multiple Choice
The interest rate on a one year security in the United States is 3%,while the interest rate on a one year security in German is 8%.If the current exchange rate is 1 EURO = $1.50,then the future exchange rate in one year,according to the international Fisher effect,is
A) $1.431.
B) $1.425.
C) $1.575.
D) $1.385.
Correct Answer:
Verified
Correct Answer:
Verified
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