It follows from the Fisher Effect that if the real interest rate is the same worldwide, any difference in interest rates between countries reflects differing expectations about
A) foreign exchange rates.
B) inflation rates.
C) unemployment rates.
D) GDP growth rates.

Question

Quizplus · Accepted Answer

It follows from the Fisher Effect that if the real interest rate is the same worldwide, any difference in interest rates between countries reflects differing expectations about inflation rates.

It Follows from the Fisher Effect That If the Real