Which of these is the principle that a difference in nominal interest rates supported by two countries' currencies will cause an equal but opposite change in their spot exchange rates?

Question

Quizplus · Accepted Answer

The principle described in the question is known as the International Fisher effect, which states that the difference in nominal interest rates between two countries will cause an equal but opposite change in their spot exchange rates over time. Purchasing power parity relates to the relative prices of goods in different countries, while the International Monetary Fund Rule and the Efficient market view principle are not relevant to the question.

Which of These Is the Principle That a Difference in Nominal