Suppose the interest rate in Japan (in Yen) is 1%, and in the U.S. it...
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Suppose the interest rate in Japan (in Yen) is 1%, and in the U.S. it is 5%. The expected rate of inflation in the U.S. is 3%. According to the international Fisher effect, the expected rate of inflation in Japan must be about
7%
5%
2%
-1%
-3%
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