The interest rate in the u.k. is 2 while the interest rate, Ask an Expert

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1) The inflation rate in the U.S. is 3%, while the inflation rate in Japan is 2%. The current exchange rate is $1 equal to 78 Japanese yen. If purchasing power parity condition is exited, what is the new exchange rate for the yen?

2) The interest rate in the U.K. is 2%, while the interest rate in the U.S. is 1%. The spot rate for the British pound is $1.45. According to the international Fisher effect (IFE), what is new level of the British pound?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M950180

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