Problem 12:

Problem 12 Intro Assume that the real interest rate is 2% everywhere. The annual nominal interest rate is 5.9% in the U.S. and 4% in Germany. 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 euro) according to the international Fisher effect? 4+ decimals Submit