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Let is and is represent the nominal 1-year interest rates for a home and foreign country, respectively. Suppose that the nominal interest rate in the

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Let is and is represent the nominal 1-year interest rates for a home and foreign country, respectively. Suppose that the nominal interest rate in the United States (the "home country) is 10.00%, while the nominal interest rate in Mexico (the "foreign country) is 4.00% Use the formule from the previous part of the question, ez-- 1, to determine the expected change in the value of the peso under IFE. According to the IFE thepry, the peso would be expected to change in value by approximately Ely y) is 10.00% -6.25% minal intere -5.45% 5,77% ermine the expe 205.77% in the value approximately

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