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According to the international Fisher Effect if an investor purchases a five year US bond that has an annual interest rate of 5 rather than a comparable British bond that has an annual interest

 According to the international Fisher Effect, if an investor purchases a five-year U.S. bond that has an annual 
interest rate of 5% rather than a comparable British bond that has an annual interest rate of 6%, then the investor 
must be expecting the ________ to ________ at a rate of at least 1% per year over the next 5 years.
A) British pound; appreciate
B) British pound; revalue
C) U.S. dollar; appreciate
D) U.S. dollar; depreciate

Apr 19 2021 View more View Less

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