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The international Fisher effect (IFE) suggests that the foreign currency will appreciate when: a. the current foreign inflation rate exceeds the current home inflation rate.
The international Fisher effect (IFE) suggests that the foreign currency will appreciate when:
a. | the current foreign inflation rate exceeds the current home inflation rate. | |
b. | the current home inflation rate exceeds the current foreign nominal interest rate. | |
c. | the current home nominal interest rate exceeds the current foreign nominal interest rate. | |
d. | the current home real interest rate exceeds the current foreign real interest rate. |
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