Please attempt all for upvote asap Last year, the one year nominal interest rate

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Please attempt all for upvote asap

Last year, the one year nominal interest rate for an investment of identical risk was 10% in Japan and 10% in Brazi Today the nominal interest rate for a one year investment of identical risk is 10% in Japan and 12% n Bal. Based on the international Fisher effect, which of the following must be true? O Expocted inflation today is higher in Japan than Brazil. The Japanese yen willappreciate against the Brazilian real in the spot maket. O The Japanese yen will depreciate against the Brazilian real in the spot marke O None of the above.

Explanation / Answer

1.
international fisher effect:
The Japanese yen will appreciate against the Brazilian real in the spot market
Q17.
(1+UK)/(1+CN)-1=1.07/1.03-1=3.8835%
So Canadian Dollar will appreicate by 3.8835%
Q15.
True
Q16.
Research has shown that exchange rate fluctuations are several variab;es
Q13.
True
Q14.
=0.8*(1+4%)/(1+8%)=0.77037037

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