The International Fisher Effect says that _____ rates are equal across countries.

Name: The International Fisher Effect says that _____ rates are equal across countries.
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Question

Quizplus · Accepted Answer

The International Fisher Effect (IFE) suggests that the differences in nominal interest rates between countries should be equal to the differences in their expected inflation rates. Therefore, the IFE focuses on real interest rates rather than nominal interest rates. Hence, the correct answer is E.

The International Fisher Effect Says That _____ Rates Are Equal