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The International Fisher Effect suggests that the nominal interest rate differential reflects the expected change in the exchange rate. an increase (decrease) in the expected
- The International Fisher Effect suggests that
- the nominal interest rate differential reflects the expected change in the exchange rate.
- an increase (decrease) in the expected inflation rate in a country will cause a proportionate increase (decrease) in the interest rate in the country.
- any forward premium or discount is equal to the expected change in the exchange rate.
- any forward premium or discount is equal to the actual change in the exchange rate.
Small explanation, please
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Cases In Healthcare Finance
Authors: Louis C. Gapenski
3rd Edition
1567932444, 9781567932447
