Question
Suppose the expected nominal interest rate is 9% and the expected inflation rate is 5% in South Africa, while the expected nominal interest rate is
Suppose the expected nominal interest rate is 9% and the expected inflation rate is 5% in South Africa, while the expected nominal interest rate is 1% and the expected deflation rate is 2% in the U.S. What do you expect to happen to the real ZAR/USD exchange rate over the next year if the interest parity holds
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
