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.

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.

answer/// real gdp decreases to y3 and the price level falls to p3;