A nation's country-risk premium can be divided into two major parts:
a. Market risk premium and foreign exchange risk premium.
b. Market risk premium and credit risk premium.
c. Market risk and expected inflation premium
d. Market risk premium and political/social risk premium.
Question 2
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises and real GDP falls.
b. The real risk-free interest rate falls and real GDP rises.
c. The real risk-free interest rate rises and real GDP remains the same.
d. The real risk-free interest rate and real GDP remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Major types of microbial cell aggregations found in phylum Cyanobacteria.
Major Impacts on Mercury and on Our Moon
Algorithm for assessing a patient at risk for self-directed violence.
Major Adverse Effects of TCAs
Fingertip rake over pectoralis major from sternum to shoulder. Pull arm out from the body to access ...
Major regulatory factors controlling pyruvate dehydrogenase and the citric acid cycle