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4. International Fisher effect 1. 2. STEP: 1 of 2 Suppose that the real interest rate in Japan and the U.S. is 1.50%. Furthermore, assume
4. International Fisher effect 1. 2. STEP: 1 of 2 Suppose that the real interest rate in Japan and the U.S. is 1.50%. Furthermore, assume that the nominal (1-year) interest rate in Japan is 6.50% while the nominal interest rate over the same time period in the United States is 11.00%. According to the international Fisher effect theory, the expected inflation rate in Japan is % while the expected inflation rate in the U.S. is %
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