Interest rate differences between countries depend on
A) differences in expected inflation, but not on expected changes in the real exchange rate.
B) differences in expected changes in the real exchange rate, but not on expected inflation.
C) neither differences in expected inflation, nor on expected changes in the real exchange rate.
D) differences in expected inflation and nothing else.
E) differences in expected inflation, and on expected changes in the real exchange rate.
E
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Which of the following would be a consequence of the retirement of the internally held portion of the public debt?
A. A reduction in the nation's productive capacity B. A reduction in the nation's standard of living C. A redistribution of the nation's wealth among its citizens D. An increase in aggregate expenditures in the economy
If the first copy cost of a music video is $223,000 and the marginal cost is $0, then as the firm produces an infinite quantity of the video, the average total cost of producing the video will approach:
A. zero. B. $1.00. C. $2,230. D. $1 million.