If the International Fisher Effect Holds,what Will Be the Effect

question 20

Multiple Choice

If the international Fisher effect holds,what will be the effect of an increase of a country's nominal interest rates on the country's currency?

• A) The currency will appreciate.
• B) The currency will depreciate.
• C) There will be no significant change in the currency's value.
• D) The currency will sell at a forward premium.

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