Nominal Interest Rates in Cyprus Are 7%,while Nominal Interest Rates

question 36

Multiple Choice

Nominal interest rates in Cyprus are 7%,while nominal interest rates in the U.S.are 5%.The spot rate for the Cyprus pound (CYP) is $1.50.According to the international Fisher effect (IFE) ,the Cyprus pound should adjust to a new level of:

• A) $1.47.
• B) $1.53.
• C) $1.43.
• D) $1.57.

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Infant Development

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Triarchic Theory

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