If the forward rate is greater than the spot rate, what are markets signaling about their expectations for the future spot rates for the home currency?
What will be an ideal response?
The home currency is expected to depreciate over the maturity period of the forward contact.
Economics
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Which of the following is an example of a normative statement?
a. If the money supply falls, interest rates will rise. b. Teenage unemployment would be lower if there were no minimum wage. c. The quantity of shirts sold increases as the price of shirts decreases. d. The federal government's total spending should be reduced. e. If interest rates go up, then construction activity will fall.
Economics
Explain the efficiency wage theory
What will be an ideal response?
Economics