Applying the International Fisher Effect,if the Interest Rate in Brazil

question 31

Multiple Choice

Applying the international Fisher effect,if the interest rate in Brazil is 9 percent and in Japan is 6 percent,we would expect the value of the Brazilian real to:

• A)appreciate by 3 percent against the Japanese yen.
• B)depreciate by 3 percent against the Japanese yen.
• C)appreciate by 1.5 percent against the Japanese yen.
• D)depreciate by 1.5 percent against the Japanese yen.

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Definitions:

Social Influence

An interaction process in which one person’s behavior causes another person to change an opinion or to perform an action that he or she would not otherwise do.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved, in various contexts including business, therapy, and medicine.

Threats

Expressions or actions that aim to cause harm or force compliance, often used as a means of control or coercion.