b) Suppose Kenya is expecting 8% inflation rate during the next one year as compared to 3% inflation rate in the USA. If

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b) Suppose Kenya is expecting 8% inflation rate during the next one year as compared to 3% inflation rate in the USA. If

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B Suppose Kenya Is Expecting 8 Inflation Rate During The Next One Year As Compared To 3 Inflation Rate In The Usa If 1
B Suppose Kenya Is Expecting 8 Inflation Rate During The Next One Year As Compared To 3 Inflation Rate In The Usa If 1 (71.29 KiB) Viewed 89 times
b) Suppose Kenya is expecting 8% inflation rate during the next one year as compared to 3% inflation rate in the USA. If the exchange rate in the beginning of the year is $1/Kes. 80. Suppose further that at the beginning of the period, interest rate in Kenya is 7% as against 4% in the USA. At what rate of interest should Kenyarise or decline to maintain the international fisher effect?
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