According to the international fisher effect, _ has an effect on __. group of answer choices the sum of the real rate and inflation premium; the nominal rate of interest the difference between the domestic and foreign interest rates; the forward premium or discount the difference between the domestic and foreign inflation rates; the forward premium or discount the difference between the domestic and foreign interest rates; the percentage difference between the current spot exchange rate and future spot exchange rate the difference between the real rate and inflation premium;; the nominal rate of interest.

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21-06-2022
Business

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According to the international fisher effect, _ has an effect on __. group of answer choices the sum of the real rate and inflation premium; the nominal rate of interest the difference between the domestic and foreign interest rates; the forward premium or discount the difference between the domestic and foreign inflation rates; the forward premium or discount the difference between the domestic and foreign interest rates; the percentage difference between the current spot exchange rate and future spot exchange rate the difference between the real rate and inflation premium;; the nominal rate of interest.

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suchetasVT suchetasVT · Answer 1 · 2022-06-29T07:38:54+02:00

According to the international Fisher effect, the difference between the real rate and inflation premium has an effect on the nominal rate of interest.

What is the International Fisher Effect (IFE)?

The International Fisher Effect (states that, countries with better nominal interest prices enjoy better prices of inflation, in order to bring about currency depreciation towards different currencies.

The International Fisher Effect (IFE) states that variations in nominal interest prices among countries may be used to predict adjustments in exchange prices.

Thus, According to the international Fisher effect, the difference between the real rate and inflation premium has an effect on the nominal rate of interest.

Learn more about international Fisher effect:

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