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Which of the following statements is NOT true according to the Fisher Effect and the International Fisher Effect? a . If the nominal interest rates
Which of the following statements is NOT true according to the Fisher Effect and the International Fisher Effect?
a If the nominal interest rates of UK is higher than the nominal interest rates in Japan, the expected inflation rate in UK should be higher than the expected inflation rate in Japan.
b If the real interest rate in Australia is higher than the other nations, the capital will flow to Australia until the real interest rate in Australia is the same as the other nations.
c If the nominal interest rates are and in UK GBP and Japan JPY in the future, we expect the GBP value of JPY to increase.
d If two nations have exactly same expected inflation rates, the nominal interest rates of two nations should be the same.
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