Suppose that the u.s and euro nominal interest rate are, Ask an Expert

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Suppose that the U.S and Euro nominal interest rate are equal. Subsequently, the U.S. nominal rate decreases while Euro nominal interest rate remains stable.

According to Fisher Effect:

1. Describe what this implies about the inflation rates between the currencies.

2. Describe also what should take place between two currencies exchange rate.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9220673

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