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Real Interest Rate Inflation Change in Inflation Nominal Interest Rate Egypt 3% 9% 14.5% USA 3% 5% 9% What would the change in inflation for
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| Real Interest Rate | Inflation | Change in Inflation | Nominal Interest Rate |
| Egypt | 3% | 9% |
| 14.5% |
| USA | 3% | 5% |
| 9% |
- What would the change in inflation for each country be?
- If Egypt is your home country what do you believe should happen to the foreign currency? Would it increase or decrease or stay the same? Show your own estimate and explain why with the support of any relevant theories.
- Justify your estimate numerically.
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Managing Risk And Uncertainty A Strategic Approach
Authors: Richard Friberg
1st Edition
0262528193,026233156X
