Problem $6\mathrm{.}6$

In the October $23,1999$ issue, the Economist reports that the interest rate per annum is $\backslash (5\mathrm{.}95\backslash \%\backslash )$ in the United States and $\backslash (71\mathrm{.}0\backslash \%\backslash )$ in Turkey. Why do you think the interest rate is so high in Turkey? Based on the reported interest rates, how would you predict the change of the exchange rate between the U$.$S$.$ dollar and the Turkish lira according to international Fisher effect?

Required:

a$.$ A high Turkish interest rate must reflect a high expected in Turkey.

b$.$ The expected appreciation or depreciation of the Turkish lira against the U$.$S$.$ dollar according to international Fisher effect: Note: Round your percentage answer to $2$ decimal places.

Interest rate reflects

Turkish lira