Question: Please match the parity relationship with the appropriate prediction. Countries with higher inflation rates have higher nominal interest rate The currency with the higher inflation

Please match the parity relationship with the appropriate prediction.
Countries with higher inflation rates have higher nominal interest rate
The currency with the higher inflation rate is expected to depreciate relative to the currency with the lower rate of inflation
One unit of currency has same purchasing power globally
Spot exchange rates adjust to the nominal interest rate differential between two countries
[ Choose ]
[ Choose ]
Fisher Effect
International Fisher Effect
Relative PPP
Absolute PPP
Interest Rate Parity
The forward exchange rate premium equals (approximately) the interest rate differential
Please match the parity relationship with the appropriate prediction. Countries with

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