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Complete each of the following statements. a) If investors in the U.S. and Canada require the same real interest rate, and the nominal rate of
Complete each of the following statements. a) If investors in the U.S. and Canada require the same real interest rate, and the nominal rate of interest is 2% higher in Canada, the purchasing power parity (PPP) suggests that the value of the Canadian dollar should (blank) against the U.S. dollar by approximately (blank) %. b) If the (blank) is equal to the difference in the nominal rate of interest between two countries, covered interest arbitrage is not feasible.
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