If the spot exchange rate is undervalued, the foreign rate of return is:
a. equal to the domestic rate of return.
b. greater than the domestic rate of return.
c. less than the domestic rate of return.
d. diverging from the domestic rate of return.
Ans: b. greater than the domestic rate of return.
Economics
You might also like to view...
Consumer surplus equals the quantity supplied minus the quantity demanded
a. True b. False Indicate whether the statement is true or false
Economics
If labor supply and labor demand both increase, employment
a. and the real wage rate will both increase b. will increase but the real wage rate will fall c. will increase but the real wage rate will remain constant d. and the real wage rate will remain constant e. will increase but the effect on the real wage rate will depend on the magnitude of the shifts
Economics