The international Fisher effect (IFE) suggests that:

Related MCQs

• If interest rates on the euro are consistently below U.S. interest rates, then for the international Fisher effect (IFE) to hold:
• If interest rate parity holds, then the one-year forward rate of a currency will ______ the predicted spot rate of the currency in one year according to the international Fisher effect.
• According to the IFE, if British interest rates exceed U.S. interest rates:
• Perfect international capital mobility suggests that international funds will be responsive to _____________ differentials
• The balance of international indebtedness is a record of a country’s international:
• Unlike the balance of payments, the balance of international indebtedness indicates the international:
• Suppose Mexico and the United States were the only two countries in the world. There exists anexcess supply of pesos on the foreign exchange market. This suggests that:
• international trade refers to trade between
• The ‘Reciprocal Demand Theory’ in International Trade can be attributed to
• _______________states that international trade will bring about equalization in the returns to homogeneous factors across countries, even without their physical movement.