If the euro per dollar exchange rate changes from 1 = 0.8 euros ...

[j.rubin]

If the euro per dollar exchange rate changes from 1 = 0.8 euros to 1 = 0.7 euros, it implies that the euro has depreciated against the dollar.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following is true?
 a. When real interest rates are higher in country A than country B there will tend to be a capital flow from country B to country A.
  b. When real interest rates are higher in country A than country B there will tend to be a capital flow from country A to country B.
  c. Capital flows will tend to increase real interest rates in countries with a capital inflow.
 d. Both b. and c. are correct.

[31809pancho]

Answer to Question 1

False

Answer to Question 2

d

[j.rubin]

TYSM

[bdobbins]

Excellent