Author Question: Assume that the interest parity condition holds and that both the expected exchange rate and foreign ... (Read 220 times)

sdfghj · **on:** Jun 30, 2018

Assume that the interest parity condition holds and that both the expected exchange rate and foreign interest rate are constant. Given this information, a reduction in the domestic interest rate will cause

A) a reduction in the exchange rate expected in the future.
B) a reduction in the current exchange rate.
C) greater depreciation of the domestic currency expected in the future.
D) all of the above
E) none of the above

Question 2

Given the broadest interpretation of technology, technology will include which of the following?

A) how well firms are run
B) the organization and sophistication of markets
C) the political environment
D) the list of blueprints defining the types of products and the techniques available to produce them
E) all of the above