(Answered) Assume that us interest rates are 6 while british interest

Finance

Assume that U.S. interest rates are 6%, while British interest rates are 7%. If the international Fisher effect holds and is used to determine the future spot rate, the forecast would reflect an expectation of:

appreciation of pound's value over the next year.
depreciation of pound's value over the next year.
no change in pound's value over the next year.
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