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1) A) Explain the six major factors of driving exchange rate value between two currencies; b) Using these six factors, explain how each factor should

1) A) Explain the six major factors of driving exchange rate value

between two currencies;

b) Using these six factors, explain how each factor should have

impacted the USD value?

3) A countrys real rate of return is 1.5% and expected inflation is 2%.

Under fisher effect, whats the nominal interest rate?

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