Question
Nominal interest rate is 7% and inflation is 4.5% in Eurozone, while nominal interest rate is 5% and inflation rate is 2.5% in the US.
Nominal interest rate is 7% and inflation is 4.5% in Eurozone, while nominal interest rate is 5% and inflation rate is 2.5% in the US. The spot rate for Euro is $1,500. According to the international Fisher effect, Euro should be adjust to a new level of?
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
