Suppose that the U.S. interest rate is 5 percent and the Turkish interest rate is 50 percent. The effect of this difference in the foreign exchange market is that
A) financial capital stops moving.
B) an American investor is guaranteed to make an additional 45 percent in dollar terms by investing in Turkey.
C) investors expect the Turkish currency to rise in value (appreciate) against the dollar.
D) investors expect the Turkish currency to fall in value (depreciate) against the dollar.
D
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Nate collected Social Security payments of $220 a month in 1985 . If the price index rose from 90 to 108 between 1985 and 1986, then his Social Security payments for 1986 should have been
a. $228. b. $238. c. $257. d. $264.
Discuss the effects on the current price of a stock from each of the following:a) An increase in the growth rate of the dividend;b) A decrease in the risk-free interest rate;c) An increase in the equity-risk premium; and finallyd) A decrease in the annual dividend.
What will be an ideal response?
What is a tariff?
What will be an ideal response?
What is not one of the reasons why farmers prefer price supports more than direct income supplements?
a. Direct income supplements tend to remain fixed over time. b. Direct income supplements tend to provide lower benefits. c. Direct income supplements tend to go predominantly to poor farmers. d. Direct income supplements tend to be viewed as demeaning.