This topic contains a solution. Click here to go to the answer

Author Question: The difference between a Euroloan interest rate and Eurodeposit interest rate is called A) net ... (Read 67 times)

abc

  • Hero Member
  • *****
  • Posts: 543
The difference between a Euroloan interest rate and Eurodeposit interest rate is called
 
  A) net interest rate.
  B) the forward premium.
  C) net profit rate.
  D) the spread.

Question 2

Does the existence of non-tradable goods allow for deviations from Purchasing power Parity?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cuttiesgirl16

  • Sr. Member
  • ****
  • Posts: 345
Answer to Question 1

D

Answer to Question 2

Yes, the existence of nontradables allows deviations from PPP. This is because the price of a nontradable is determined entirely by its domestic supply and demand curves, and in turn fluctuations in demand and supply for these good will affect the price level. Examples include housing, haircut, services etc.




abc

  • Member
  • Posts: 543
Reply 2 on: Jun 30, 2018
Gracias!


marict

  • Member
  • Posts: 304
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

For a complete list of videos, visit our video library