According to the international Fisher effect, if Venezuela has a much higher nominal interest rate than other countries, its inflation rate will likely be ____ than other countries, and its currency will ____.

Question

​According to the international Fisher effect, if Venezuela has a much higher nominal interest rate than other countries, its inflation rate will likely be ____ than other countries, and its currency will ____.

Quizplus · Accepted Answer

The international Fisher effect suggests that a country with a higher nominal interest rate than another will have a higher expected inflation rate, leading to a depreciation or weakening of its currency relative to the other country's currency.

​According to the International Fisher Effect, If Venezuela Has a Much

According to the International Fisher Effect, If Venezuela Has a Much