Author Question: Assume that the uncovered interest parity condition holds. Also assume that the U.S. interest rate ... (Read 44 times)

mckennatimberlake · **on:** Jun 30, 2018

Assume that the uncovered interest parity condition holds. Also assume that the U.S. interest rate is greater than the U.K. interest rate. Given this information, we know that investors expect

A) the pound to depreciate.
B) the pound to appreciate.
C) the dollar-pound exchange rate to remain fixed.
D) the U.S. interest rate to fall.
E) none of the above

Question 2

In which of the following periods was the relationship between the U.S. unemployment rate and U.S. inflation rate unstable?

A) 1901 to 1909
B) 1911 to 1919
C) 1921 to 1929
D) 1931 to 1939
E) none of the above