Question 2 The international Fisher effect (IFE) suggests that the foreign currency will appreciate when: the current home nominal interest rate exceeds the current foreign nominal interest rate. the current home real interest rate exceeds the current foreign real interest rate. the current foreign inflation rate exceeds the current home inflation rate. the current home inflation rate exceeds the current foreign nominal interest rate. Question 3 1 points spot exchange rate is s/pounds, US interest rate is 10%, UK interest rate is 78, inflation in US is 74, inflation in UK is 4% then the forward rate is (find exact answer up to three 5/pound 4.864 Suv decimals) S/pound 5.144 S/pound 4,860 S/pound 5.140