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Question
The nominal interest rate is 9 percent in Brazil and 6 percent in Japan. Applying the international Fisher effect, the Brazilian real should:A.appreciate by 3 percent against the Japanese yen.
B.depreciate by 3 percent against the Japanese yen.
C.appreciate by 1.5 percent against the Japanese yen.
D.depreciate by 1.5 percent against the Japanese yen.
E.appreciate by 15 percent against the Japanese yen.
Answer
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