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If nominal British interest rates are 5 percent and nominal U.S. interest rates are 4 percent, then the British pound () is expected to ____
If nominal British interest rates are 5 percent and nominal U.S. interest rates are 4 percent, then the British pound () is expected to ____ by about ____percent, according to the international Fisher effect (IFE) (please use 4 decimal points).
a. | Appreciate, 0.95% | |
b. | None of the above | |
c. | Depreciate, 0.95% |
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