Please attempt all for upvote asap Last year the one year no

Please attempt all for upvote asap

Last year, the one year nominal interest rate for an investment of identical risk was 10% in Japan and 10% in Brazi Today the nominal interest rate for a one year investment of identical risk is 10% in Japan and 12% n Bal. Based on the international Fisher effect, which of the following must be true? O Expocted inflation today is higher in Japan than Brazil. The Japanese yen willappreciate against the Brazilian real in the spot maket. O The Japanese yen will depreciate against the Brazilian real in the spot marke O None of the above.

Solution

1.
international fisher effect:
The Japanese yen will appreciate against the Brazilian real in the spot market
Q17.
(1+UK)/(1+CN)-1=1.07/1.03-1=3.8835%
So Canadian Dollar will appreicate by 3.8835%
Q15.
True
Q16.
Research has shown that exchange rate fluctuations are several variab;es
Q13.
True
Q14.
=0.8*(1+4%)/(1+8%)=0.77037037