The Fisher effect states that Group of answer choices any forward premium or discount is equal to the actual change in the exchange rate. an increase (decrease) in the expected inflation rate in a country will cause a proportionate increase (decrease) in the interest rate in the country. the nominal interest rate differential reflects the expected change in the exchange rate. any forward premium or discount is equal to the expected change in the exchange rate.

the nominal interest rate differential reflects the expected change in the exchange rate.

Explanation:

The Fisher Effect was developed by Irving Fisher and is shows the relationship between real interest rates, nominal interest rates and inflation.

Fisher's theory states that real interest rate = nominal interest rate - inflation rate.

The International Fisher Effect describes the relationship between two different currencies and how they are proportionally affected by changes in their exchange rate.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; planning;