Question: Problem 7: Problem 7 H H Intro Assume that the real interest rate is 2% in the U.S. and 1% in Canada. The annual nominal

Problem 7:

Problem 7 H H Intro Assume that the real interest rate is 2% in the U.S. and 1% in Canada. The annual nominal interest rate is 4% in the U.S. and 5.2% in Canada. Part 1 Attempt 1/10 for 10 pts. What is the approximate expected percentage change in the exchange rate (measured in U.S. dollars per Canadian dollar) according to the Fisher effect and purchasing power parity? 4+ decimals Submit

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