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Author Question: Today's forward rate must equal the future spot rate. Indicate whether the statement is true or ... (Read 118 times)

tsand2

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on: Jun 30, 2018
Today's forward rate must equal the future spot rate.
 
  Indicate whether the statement is true or false

Question 2

The expected real interest rate (re) in terms of the nominal interest rate (R) and the expected inflation rate (e) is given by
 
  A) re = e + R.
  B) re = 2e + R2.
  C) re = e + R2.
  D) re = R - e.
  E) re = R2 - e.


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connor417

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Reply #1 on: Jun 30, 2018
Answer to Question 1

FALSE

Answer to Question 2

D


tsand2

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Reply 2 on: Jun 30, 2018
Gracias!

mohan

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Reply 3 on: Yesterday
Wow, this really help

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