Question
Assume that the real interest rate is 2% in the U.S. and 1% in Canada. The annual nominal interest rate is 3.2% in the U.S.
Assume that the real interest rate is 2% in the U.S. and 1% in Canada. The annual nominal interest rate is 3.2% in the U.S. and 5.4% in Canada.
Part 1
What is the approximate expected percentage change in the exchange rate (measured in U.S. dollars per Canadian dollar) according to the Fisher effect and purchasing power parity?
Answer with 4+ decimals
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The Mining Valuation Handbook Mining And Energy Valuation For Investors And Management
Authors: Victor Rudenno
4th Edition
0730377075, 978-0730377078
