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

Author Question: In a country with floating exchange rates and high capital mobility, an increase in government ... (Read 103 times)

crazycityslicker

  • Hero Member
  • *****
  • Posts: 537
on: Jun 30, 2018
In a country with floating exchange rates and high capital mobility, an increase in government spending will be
 
  A) less effective than with low capital mobility.
  B) highly effective.
  C) not effective at all.
  D) harmful to the growth of real incomes.

Question 2

Suppose an individual firm is comparing two investments, a one year bond from a U.S. firm paying 4 or a one year bond from a German firm which is paying 6. The current dollars-per-euro rate is 0.75, and the expected rate in one year is 0.72.
 
  If the expected rate is correct, which investment will receive the higher return? A) The U.S. Bond
  B) The German Bond
  C) They will have the same return.
  D) This cannot be determined from the information given.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Silverbeard98

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

A


crazycityslicker

  • Member
  • Posts: 537
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

ghepp

  • Member
  • Posts: 361
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

The average adult has about 21 square feet of skin.

This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
U.S. Cancer Death Rates U.S. Cancer Death Rates
Structural Mobility Structural Mobility
Protein topology and folding rates Protein topology and folding rates
The Distribution of Growth Rates, 1975–2009 The Distribution of Growth Rates, 1975–2009
Suicide rates in Canada are more than three times higher for males than for females Suicide rates in Canada are more than three times higher for males than for females
Video: Role of the urinary system - acidosis and alkalosis

For a complete list of videos, visit our video library