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IFE, IRP, and PPP. Understand the implications of the three theories, and be able to explain...

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Finance

IFE, IRP, and PPP. Understand the implications of the threetheories, and be able to explain and mathematically work withthem.

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IFE stands for International Fisher Effect This theory states that the changes in currency values at a particular time period between any 2 countries is directly proportional to the difference between their nominal interest rates Nominal interest rates is equal to the sum of real interest rates and expected inflation According to IFE country with higher nominal interest    See Answer
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IFE, IRP, and PPP. Understand the implications of the threetheories, and be able to explain and mathematically work withthem.

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