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Problem 11: Problem 11 Intro Assume that the real interest rate is 2% everywhere. The annual nominal interest rate is 3.4% in the U.S. and

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Problem 11:

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Problem 11 Intro Assume that the real interest rate is 2% everywhere. The annual nominal interest rate is 3.4% in the U.S. and 4.9% in Mexico. Part 1 Attempt 1/10 for 10 pts. What is the approximate expected percentage change in the exchange rate (measured in U.S. dollars per Mexican peso) according to the international Fisher effect? 4+ decimals Submit

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