Question: The current spot exchange rate is $ 0 . 0 4 7 per Mexican peso. Assume that the real interest rate is 2 % everywhere,
The current spot exchange rate is $ per Mexican peso. Assume that the real interest rate is everywhere, and that the annual nominal interest rate is in the US and in Mexico. What is the approximate expected percentage change in the exchange rate measured in US dollars per Mexican peso according to the international Fisher effect?
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