Suppose that the 12-month interest rates for the United States ...

[B]

Suppose that the 12-month interest rates for the United States and the United Kingdom are 7 and 6 respectively, and E = 2.10 /. Given this information, what is the expected exchange rate change over the year?
 
  A) 1
  B) 4.2
  C) 2.1
  D) 2.0

Question 2

Explain why each of the following is not a valid argument for protection.
 
  (a) patriotism
   (b) fair play (e.g. level international playing fields)
   (c) preservation of jobs

[ASDFGJLO]

Answer to Question 1

A

Answer to Question 2

(a) Protection can lower welfare, which would be unpatriotic.
(b) The notion of fair play does not conform well to the real world. Fair play for producers would be unfair for consumers, etc.
(c) Protection tends to redistribute jobs rather than create new ones.

[B]

YES! Correct, THANKS for helping me on my review

[amandalm]

Thanks for the timely response, appreciate it