Question
4. If the International Fisher Effect holds, and if the following information is given, what should be S(MYD/SGD)? The expected inflation in Malaysia is 4%
4. If the International Fisher Effect holds, and if the following information is given, what should be S(MYD/SGD)?
The expected inflation in Malaysia is 4%
The expected inflation in Singapore is 3%
F(SGD/MYD) is 0.3
SGD is Singapore dollar and MYD is Malaysian Ringgit
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
