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31. Assume that U.S, and British investors roquire a real return of 2 percent If the nominal Ui.S. interest rate is 15 percent, and the
31. Assume that U.S, and British investors roquire a real return of 2 percent If the nominal Ui.S. interest rate is 15 percent, and the nominal British rate is 13 percent, then according to the IFE, the British inflation rate is expected to be abourt the U.S. inflation rate, and the British pound is expected a. 2 percentage points above, depreciate by about 2 percent b. 3 percentage points above; depreciate by about 3 percent c. 3 percentage points below, appreciate by about 3 percent d. 3 percentage points below; depreciate by about 3 percent e. 2 percentage points below; appreciate by about 2 percent
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