ou read in a newspaper that the nominal interest rate is 12 percent per year in canada and 8 percent per year in the u.s. suppose that the international capital flows equalize the real interest rates in the two countries and that purchasing power parity (ppp) holds. a. using the fischer equation (discussed in chapter 6), what can you infer about the expected inflation differential in canada and in the united states? (show all your work for full credit). b. what can you infer about the expected change in the exchange rate between the canadian dollar and the u.s. dollar? show all your work for full credit