Forward and spot exchange rates A) are necessarily equal. B) ...

[nelaaney]

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?

[Viet Thy]

Answer to Question 1

D

Answer to Question 2

One half a widget.

[nelaaney]

Thanks for the timely response, appreciate it

[Animal_Goddess]

Excellent