Give 3 reasons for deviations from IRP. Do these deviations indicate unexploited profit opportunities for investors?
What will be an ideal response?
Transaction costs, taxes, differentiated assets, timing—none provide profit opportunities.
You might also like to view...
What are the different forms of bank borrowings?
What will be an ideal response?
A decrease in matching efficiency
A) can never happen. B) is due to a change in the productivity of firms. C) is not related to sectoral shocks. D) can explain the shift in the Beveridge curve.
When economists speak of markets, they primarily mean: a. places where production of goods and services take place
b. those locations where stocks and bonds of corporations take place. c. mechanisms that coordinate actions of buyers and sellers. d. the trillions of dollars that change hands in the foreign exchange markets.
What is an example of a sequential game?
What will be an ideal response