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QUESTION 13 Suppose that the nominal interest rate in Mexico is lower than the nominal interest rate in the US. Which of the following will

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QUESTION 13 Suppose that the nominal interest rate in Mexico is lower than the nominal interest rate in the US. Which of the following will occur according to the International Fisher Effect? The dollar will appreciate in nominal terms relative to the peso. Expected inflation is higher in Mexico relative to the US. The peso will appreciate in nominal terms relative to the dollar. O None of the above

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