This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If money were free from all controls when transferred internationally, the real rate of interest ... (Read 103 times)

jake

  • Hero Member
  • *****
  • Posts: 538
on: Jul 7, 2018
If money were free from all controls when transferred internationally, the real rate of interest would ________.
 
  A) be the same in all countries
  B) be the same as the inflation rate
  C) create arbitrage opportunities across countries
  D) create arbitrage opportunities in developed countries

Question 2

Which of the following represents the Fisher effect?
 
  A) Cross Rate = Real Interest Rate + Nominal Interest Rate
  B) Real Interest Rate = Nominal Interest Rate + Spot Rate
  C) Nominal Interest Rate = Real Interest Rate + Inflation Rate
  D) Real Interest Rate = Nominal Interest Rate + Unemployment Rate


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Ksanderson1296

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jul 7, 2018
Answer to Question 1

A

Answer to Question 2

C


jake

  • Member
  • Posts: 538
Reply 2 on: Jul 7, 2018
:D TYSM

Alyson.hiatt@yahoo.com

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Primary production is positively correlated with the evapotranspiration rate. Primary production is positively correlated with the evapotranspiration rate.
A Glitch Interrupts the Vela Pulsar’s Spindown Rate A Glitch Interrupts the Vela Pulsar’s Spindown Rate
Energy Transfer Processes: Free Convection Energy Transfer Processes: Free Convection
Contributions to the free energy of folding of globular proteins Contributions to the free energy of folding of globular proteins
A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ... A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ...
Irene Manufacturing uses a predetermined overhead allocation rate based on a percentage of ... Irene Manufacturing uses a predetermined overhead allocation rate based on a percentage of ...
Video: Blood Flow through the Human Heart

For a complete list of videos, visit our video library