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The international Fisher effect (IFE) states that the expected changes in the exchange rate between two currencies in a certain time period is approximately equal

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The international Fisher effect (IFE) states that the expected changes in the exchange rate between two currencies in a certain time period is approximately equal to the difference in the interest rates in the two countries in the same period. If E is the expected change in the exchange rate between two currencies, ih is the expected nominal interest rate in the home country, if is the expected nominal interest rate in the foreign country, h is the expected inflation rate in the home country, and f is the expected inflation rate in the foreign country, the best representation of the international Fisher effect would be: Eh+fEihifhfihifEih+if Suppose you work for a Swiss-based company and need to calculate the expected yield on one-year U.S. Treasury Bills. You've collected the following Round intermediate calculations to four decimal places.)

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