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Author Question: Forward and spot exchange rates A) are necessarily equal. B) do not move closely together. C) ... (Read 50 times)

nelaaney

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on: Jun 30, 2018
Forward and spot exchange rates
 
  A) are necessarily equal.
  B) do not move closely together.
  C) are always such that the forward exchange rate is higher.
  D) move closely together and are equal on the value date.
  E) are unrelated to the value date.

Question 2

Given the information in the table above. If these two countries trade these two goods with each other in context of the Ricardian model of comparative advantage, what is the lower limit for the price of cloth?
 
  What will be an ideal response?


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Viet Thy

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

D

Answer to Question 2

One half a widget.


nelaaney

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

vickyvicksss

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Reply 3 on: Yesterday
Excellent

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