The international Fisher effect (IFE) suggests that: a. a home currency will depreciate if the current home inflation rate exceeds the current foreign inflation rate. b. a home currency will appreciate if the current home inflation rate exceeds the current foreign inflation rate. c. a home currency will depreciate if the current home interest rate exceeds the current foreign interest rate. d. a home currency will appreciate if the current home interest rate exceeds the current foreign interest rate.

international Fisher effect (IFE) gives their theory as the economic difference in the exchange rate of two different currency can be associated to the disparity in the nominal interest rat of the two countries. The body explained whenever the interest rate of a country is more that that of the foreign interest rate, then the currency of that home country will fall/depreciate. It should be noted that the international Fisher effect (IFE) suggests that home currency will depreciate if the current home interest rate exceeds the current foreign interest rate.