Suppose that the current interest rate in the US is 0.89%. If the NIRP predicts that the exchange rate between Madagascar's Ariary and the US dollar will jump from 3,750 Ariary/Dollar to 4,244 Ariary/Dollar, what is the current interest rate in Madagascar? Round your answer to two decimal points and omit any units (e.g., 1.23 NOT 1.23%).

Suppose that the current interest rate in the US is 0.89%. If the NIRP predicts that the exchange rate between Madagascar's Ariary and the US dollar will jump from 3,750 Ariary/Dollar to 4,244 Ariary/Dollar, what is the current interest rate in Madagascar? Round your answer to two decimal points and omit any units (e.g., 1.23 NOT 1.23%).

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter6: Managing In The Global Economy

Section: Chapter Questions

Problem 5E

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