Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. If you save all your money, how much money will you have one year from today?

A market exchange rate which has been adjusted for inflation is called a

A) nominal exchange rate. B) foreign market price index. C) real exchange rate. D) domestic exchange factor.

The Fed ________ intervene in the foreign exchange market by supplying dollars and the Fed ________ intervene in the foreign exchange market by demanding dollars

A) can; can B) cannot; can C) can; cannot D) cannot; cannot