Author Question: Refer to the table above. If you are told that Country B is very much richer than Country A, then ... (Read 86 times)

notis · **on:** Jun 30, 2018

Refer to the table above. If you are told that Country B is very much richer than Country A, then the correct answer is

A) country B will export good S.
B) country A will export good S.
C) both countries will export good S.
D) trade will not occur between these two countries.
E) both countries will import good S.

Question 2

A constant differential between the interest rates of two countries over different terms to maturity implies that future changes in the exchange rate are expected to occur at a(n) ________ rate.

A) constant
B) increasing
C) decreasing
D) None of the above