Suppose that the real interest rate in Japan and the U.S. is 3.00%. Furthermore, assume that the nominal (1-year) interest rate in Japan is 12.50% while the nominal interest rate over the same time period in the United States is 4.50%. According to the international Fisher effect theory, the expected inflation rate in Japan is is while the expected inflation rate in the U.S. Let i, and if represent the nominal 1-year interest rates for a home and foreign country, respectively. According to the international Fisher effect (IFE) theory, which of the following best represents the predicted change in the foreign currency ex? O e--1 1+1 OG Oej 18 -1 O e-TH +1