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plumzebra171Lv1
28 Sep 2019
Sally Franklin is a financial advisor to Jamie Curtess, a U.S.citizen interested in learning more about how her investments willbe affected by exchange rates and differences in interest ratesinternationally. Franklin has gathered the following informationbased on Curtessâs investment interests.
The current spot exchange rate: $1 = â¬0.74.
Europe United States
Nominal 1-year interest rate: 4% ?
Expected annual inflation: 2% 1%
Franklin also gathers the following information:
Switzerland South Africa
Nominal 1-year interest rate: 5% 7%
Expected annual inflation: 3% 5%
screenshot of question:https://d.pr/i/4RwRXI
According to the international Fisher relation, what is the1-year nominal interest rate in the United States?
Sally Franklin is a financial advisor to Jamie Curtess, a U.S.citizen interested in learning more about how her investments willbe affected by exchange rates and differences in interest ratesinternationally. Franklin has gathered the following informationbased on Curtessâs investment interests.
The current spot exchange rate: $1 = â¬0.74.
Europe United States
Nominal 1-year interest rate: 4% ?
Expected annual inflation: 2% 1%
Franklin also gathers the following information:
Switzerland South Africa
Nominal 1-year interest rate: 5% 7%
Expected annual inflation: 3% 5%
screenshot of question:https://d.pr/i/4RwRXI
According to the international Fisher relation, what is the1-year nominal interest rate in the United States?
Jean KeelingLv2
28 Sep 2019
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