In the October 23, 1999 issue, the Economist reports that the interest rate per annum is 5.97% in the United States and 72.0% in Turkey. Why do you think the interest rate is so high in Turkey? Based on the reported interest rates, how would you predict the change of the exchange rate between the U.S. dollar and the Turkish lira according to international Fisher effect?

Required:

A high Turkish interest rate must reflect a high expected _________blank in Turkey.

The expected appreciation or depreciation of the Turkish lira against the U.S. dollar according to international Fisher effect:

Note: Round your percentage answer to 2 decimal places.