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The Fisher effect states that O any forward premium or discount is equal to the actual change in the exchange rate. the nominal interest rate

The Fisher effect states that O any forward premium or discount is equal to the actual change in the exchange rate. the nominal interest rate differential reflects the expected change in the exchange rate. O an increase (decrease) in the expected inflation rate in a country will cause a proportionate increase (decrease) in the interest rate in the country O any forward premium or discount is equal to the expected change in the exchange rate

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