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Assume that the U.S. and Mexico nominal interest rates are equal. Then, the U.S. nominal interest rate decreases while the Mexican nominal interest rate remains
Assume that the U.S. and Mexico nominal interest rates are equal. Then, the U.S. nominal interest rate decreases while the Mexican nominal interest rate remains stable. According to the international Fisher effect, this implies expectations of than before, and that the Mexican peso should against the dollar. lower U.S. inflation; depreciate lower U.S. inflation; appreciate higher U.S. inflation; depreciate O higher U.S. inflation; appreciate
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