Business
Business, 21.06.2021 16:00, bee171

If interest rates on the euro are consistently below U. S. dollar interest rates, then for the International Fisher Equation (IFE) to hold between the US and the Eurozone: a) The nominal exchange rate for the euro will remain constant.
b) The euro will depreciate against the dollar The euro will appreciate against the dollar.
c) Purchasing power parity must hold between the dollar and the euro.
d) The euro will remain constant with respect to the dollar.

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