If the interest rate on a U.S. one-year bond is 2%, the interest rate on a Brazilian one-year bond is 8%, and the currency premium on reals (Brazilian currency) is 3%,
what is the expected rate of appreciation of the U.S. dollar according to interest-rate parity?
A) -3%
B) 3%
C) 5%
D) 6%
B
Economics
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An increase in the U.S. price level (foreign prices held constant) will cause a leftward shift in the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
Economics
Suppose both wages and employment decrease. These changes most likely were caused by:
A. an increase in the working age population. B. a decline in business activity in the economy. C. a decline in immigration. D. an increase in emigration.
Economics