Author Question: The term structure relationships regarding different interest rates approximately reflect expected ... (Read 119 times)

Collmarie · **on:** Jun 30, 2018

The term structure relationships regarding different interest rates approximately reflect expected exchange rate changes.

Indicate whether the statement is true or false

Question 2

If trade opens up between the two formerly autarkic countries, Australia and Belgium, then

A) the real income of both countries may increase.
B) the real income of Australia and of Belgium will increase.
C) the real income of Australia but not of Belgium will increase.
D) the real income of neither country will increase.
E) the real income of both countries will increase.