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Author Question: Under fixed exchange rate, in general A) the domestic and foreign interest rates are equal, R = R ... (Read 30 times)

littleanan

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on: Jun 30, 2018
Under fixed exchange rate, in general
 
  A) the domestic and foreign interest rates are equal, R = R .
  B) R = R + (Ee - E)/E.
  C) the foreign and domestic interest rates are unequal.
  D) the expected rate of domestic currency depreciation is high.
  E) the expected rate of currency depreciation is one.

Question 2

The United States finances current account deficits largely with dollars and, as a result, faces almost no constraint on its ability to run deficits.
 
  Indicate whether the statement is true or false


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macybarnes

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

TRUE


littleanan

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

softEldritch

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Reply 3 on: Yesterday
Excellent

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