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QUESTION 8 Both UK and Chinese investors require a real rate of return of 2.5% per year on their investments. The nominal UK interest rate
QUESTION 8 Both UK and Chinese investors require a real rate of return of 2.5% per year on their investments. The nominal UK interest rate is 3.0% per year. Inflation in China is currently 6.5% per year. Based on International Fisher effect, what is the percentage change in value of the Chinese Yuan over the next year
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