Estimate the difference between the inflation rates

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Q. Assume the spot also the three-month forward rate for the yen are 80 yen/$ also 85 yen/$, illustrate what would you estimate the difference between the inflation rates of the U.S. also Japan?

Q. Assume which survey procedures of consumer confidence indicate a wave of pessimism is sweeping the nation. If policymakers do nothing, illustrate what will take place to cumulative demand? Illustrate what should the Fed do if it needs to stabilize cumulative demand? If the Fed does nothing, illustrate what might Congress do to stabilize cumulative demand?

 

Reference no: EM1322926

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