One aswumption made in developing the IFE is that all investors in all countries have the came ceal interest rate. Whot does this mean? If all imvestars iequire the same real retum, then the differentials in nomingl interest rates should be solely due to differentias in anticiosted amang countries ssurne that several European countries that use the euro as their currency experience higher inflation than the United States, while two other European countries that use the euro s their currency experience lower infiation than the United States. According to Ppp, how will the euro's value against the doller be atfected? The high European infliation overall would the U.5. demand for European products, the European demand for U,S. products, ond cause the euro to agiainst the dollae