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2) Suppose that in 2018 rumors have it that the dollar would experience a significant decline in value. What do you think will happen to the euro-dollar exchange rate?

3) Suppose that short-term real interest rates fall in China. Do you think this will be good news or bad news for the tourism industry in Mexico?

4) When applying for a business loan, your bank as for a collateral. Why is that? Hint: think adverse selection?

Reference no: EM132685279

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Applying for a business loan : When applying for a business loan, your bank as for a collateral. Why is that? Hint: think adverse selection?
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