According to the ife if interest rates are 7 in the us and, Financial Management

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According to the ife if interest rates are 7 in the us and

1. According to the IFE, if interest rates are 7% in the U.S. and 4% in Japan, what must be the approximate expected change in the value of the dollar?

2. According to the IFE, if interest rates are 6% in the U.S. and 8% in Europe, what is the expected change in the value of the euro? (no approximations)

3. Interest rates are 7% in the U.S. Interest rates are 3% in Europe. You observe me investing in Europe at 3%. What can you infer about what I am expecting the € to do over this next year?

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