Which one of the following supports the idea that real interest rates are equal across countries?

Question

Quizplus · Accepted Answer

The international Fisher effect indicates that real interest rates should be equal across countries after adjusting for expected inflation. This means that the interest rate differential between two countries should be equal to the differential between their expected inflation rates. Therefore, real interest rates should be equalized through arbitrage. The other options (A, B, D, and E) relate to different aspects of international finance, but they do not directly address the issue of real interest rate parity.

Which One of the Following Supports the Idea That Real