If real interest rates are equal in two countries, then the nominal interest differential on their currencies will equal
A) the expected inflation differential.
B) the risk premium.
C) the forward premium or discount.
D) Both A and C.
D
Economics
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Suppose that a firm is currently earning revenues that are smaller than its total costs. The firm's managers are trying to decide whether or not the firm should shut down in the short run
On what information should the manager's decision be based?
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In the 2000s, the U.S. economy had both a ________ and a ________
A) large trade deficit; large capital inflow B) large trade surplus; large capital inflow C) large trade deficit; high saving rate D) large capital inflow; high saving rate E) large capital inflow; small government budget deficit
Economics