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Q 1618 (provide numbers) The current exchange rate is 1.16 $/ and interest rates are 3.5% in US and 1% in eurozone. Sometime later, the
Q 1618 (provide numbers) The current exchange rate is 1.16 $/ and interest rates are 3.5% in US and 1% in eurozone. Sometime later, the euro interest rate suddenly rises to 2%. 15. According to Asset Market Theory, what will be the new expected rate? 16. According to Asset Market Theory, what will be the new spot rate? 3 17. According to Fisher Theory, what will be the new spot rate? Q 1618 (provide numbers) The current exchange rate is 1.16 $/ and interest rates are 3.5% in US and 1% in eurozone. Sometime later, the euro interest rate suddenly rises to 2%. 15. According to Asset Market Theory, what will be the new expected rate? 16. According to Asset Market Theory, what will be the new spot rate? 3 17. According to Fisher Theory, what will be the new spot rate
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