If the international Fisher effect holds, what will be the effect of an increase of a country's nominal interest rates on the country's currency?

A. There will be no significant change in the currency's value.
B. The currency will depreciate.
C. The currency will sell at a forward premium.
D. The currency will appreciate.


Answer: B

Business

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What will be an ideal response?

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a. True b. False Indicate whether the statement is true or false

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