Assume that U.S. and Argentine investors require a real return of 2 percent. If the U.S. nominal interest rate is 5 percent, and Argentina's nominral interest rate is 7 percent, then according to the IFE, the Argentine inflation rate is expected to be about the U.S. inflation rate, and the Argentine peso is expected to 3 percentage points above; depreciate by about 3 percent 3 percentage points below; depreciate by about 3 percent 2 percentage points below; appreciate by about 2 percent 3 percentage points below; appreciate by about 3 percent 2 percentage points above; depreciate by about 2 percent