According to the international fisher effect

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Nominal interest rates in Cyprus are 7%, while nominal interest rates in the U.S. are 5%. The spot rate for the Cyprus pound (CYP) is $1.50. According to the international Fisher effect (IFE), what is the level of exchange rate Cyprus pound should adjust to?

Reference no: EM131188194

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According to the international fisher effect : Nominal interest rates in Cyprus are 7%, while nominal interest rates in the U.S. are 5%. The spot rate for the Cyprus pound (CYP) is $1.50. According to the international Fisher effect (IFE), what is the level of exchange rate Cyprus pound should ad..

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