Suppose that real GDP rises in all four quarters of 2005; thus 2005 would definitely be a year...
What will be an ideal response?
of expansion
You might also like to view...
Interest rate parity occurs when
A) interest rates are equal across nations. B) interest rate differentials are always maintained across nations. C) interest rates no longer affect the exchange rate. D) prices are equal across nations when exchange rates are taken into account. E) the interest rate in one currency equals the interest rate in another currency when exchange rate changes are taken into account. The figure above shows the demand curve for dollars in the foreign exchange market.
Assuming r is the interest rate, to compute the present value of a dollar to be received a year from today, you
A) multiply the dollar by r. B) divide the dollar by (1 - r). C) multiply the dollar by (1 + r). D) divide the dollar by (1 + r).