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7) Assume U.S. and Swiss investors require a real rate of return of 3%. Assume the nominal U.S. interest rate is 8% and the nominal

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7) Assume U.S. and Swiss investors require a real rate of return of 3%. Assume the nominal U.S. interest rate is 8% and the nominal Swiss rate is 4%. According to the international Fisher effect, the franc will by about a. appreciate; 3% b. appreciate; 4% C. depreciate; 3% d. depreciate; 2% e. appreciate; 1%

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