Q. The international Fisher effect (IFE) suggests that: (Solved)
1. a home currency will depreciate if the current home interest rate exceeds the current foreign interest rate.
2. a home currency will appreciate if the current home interest rate exceeds the current foreign interest rate.
3. a home currency will appreciate if the current home inflation rate exceeds the current foreign inflation rate.
4. a home currency will depreciate if the current home inflation rate exceeds the current foreign inflation rate.
- a. a home currency will depreciate if the current home interest rate exceeds the current foreign interest rate.