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13-03-2024
Business

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Let's suppose the current exchange for Rupee (India currency) vs. Krona (Sweden currency) is: 7.5 Rupee/Krona. Suppose the interest rate on India's government securities with one-year maturity is 1.6%, and that of Sweden is 2.1%. According to the International Fisher Effect model, Rupee will _____ against the other currency. Group of answer choices.
a. appreciate
b. depreciate

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