Under fixed exchange rate, in general
A) the domestic and foreign interest rates are equal, R = R .
B) R = R + (Ee - E)/E.
C) the foreign and domestic interest rates are unequal.
D) the expected rate of domestic currency depreciation is high.
E) the expected rate of currency depreciation is one.
A
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What will be an ideal response?
Below is a graph of two possible long-run industry supply curves for a purely competitive industry. Explain why (1) is upsloping and (2) is horizontal
What will be an ideal response?