Question
If nominal British interest rates are 1.5% and nominal U.S. interest rates are 5 percent, then the British pound () is expected to ____ by
If nominal British interest rates are 1.5% and nominal U.S. interest rates are 5 percent, then the British pound () is expected to ____ by about ____percent, according to the international Fisher effect (IFE).
I know it is 3.45% but I am not sure if it is expected to depreciate or appreciate.
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
978-0133423822
