At a given nominal rate of interest, when spending is equal to output and there is uncovered interest parity, we have:
A) real exchange rate parity.
B) equilibrium in the goods market and in the forex market.
C) stable inflation and low unemployment.
D) depreciation of the home currency.
Ans: B) equilibrium in the goods market and in the forex market.
Economics
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Economics
The credit derivative that, for a fee, gives the purchaser the right to receive profits that are tied either to the price of an underlying security or to an interest rate is called a
A) credit option. B) credit swap. C) credit-linked note. D) credit default swap.
Economics