If the forward rate is greater than the spot rate, what are markets signaling about their expectations for the future spot rates for the home currency?
What will be an ideal response?
The home currency is expected to depreciate over the maturity period of the forward contact.
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Competition would probably be abolished if society could find a way to abolish
A) inequality. B) scarcity. C) money. D) economists.
When many residents own automobiles that can handicap urban transportation services
Indicate whether the statement is true or false
As the price level rises
a. people are more willing to lend, so interest rates rise. b. people are more willing to lend, so interest rates fall. c. people are less willing to lend, so interest rates fall. d. people are less willing to lend, so interest rates rise.
Reducing protectionism allows greater gains from free trade.
Answer the following statement true (T) or false (F)