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Eduncle posted an MCQ
October 17, 2019 • 22:54 pm 0 points
  • UGC NET
  • Management

International Fisher Effect suggests that a home currency will

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    Eduncle Best Answer

    International Fisher Effect assumes that a country with lower interest rates will see lower levels of inflation, which will translate to an increase in the real value of the country's currency in comparison to another country's currency. So the home currency will depreciate if the current home interest rate exceeds current foreign interest rates.

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