Changes in which of the following will cause a change in exchange rates?
A) real interest rates
B) consumer preferences
C) perceptions of economic and political stability
D) all of the above
D
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Moral hazard can be a problem in lending since lenders share __________ in the __________ risk
A) proportionately; upside B) proportionately; downside C) disproportionately; upside D) disproportionately; downside
The following is not a consequence of Xt and Yt being cointegrated:
A) if Xt and Yt are both I(1), then for some ?, Yt – ? Xt is I(0). B) Xt and Yt have the same stochastic trend. C) in the expression Yt – ? Xt , ? is called the cointegrating coefficient. D) if Xt and Yt are cointegrated then integrating one of the variables gives you the same result as integrating the other.
The dominant currencies in the international bond market are the euro and the U.S. dollar
a. true b. false
An export subsidy raises the domestic price of the product.
Answer the following statement true (T) or false (F)