Assume the interest parity condition holds and that individuals expect the dollar to appreciate by 5% during the coming year. Given this information, we know that
A) the interest rate differential between the two countries is less than 5%.
B) i < i.
C) i = i.
D) individuals will only hold foreign bonds.
E) none of the above
C
Economics
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The winner of a second-price sealed-bid auction pays an amount equal to ________
A) half of his bid B) the lowest bid C) the second-highest bid D) his valuation of the good
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If demand for a good is price elastic, then the price elasticity will be:
a. equal to one. b. equal to zero. c. greater than one. d. less than one. e. less than zero.
Economics