Effects of a rise in the interest rate, International Economics

Assignment Help:

Q. Discusses the effects of a rise in the interest rate paid by euro deposits on the exchanger rate.

 

536_Effects of a rise in the interest rate.png

Answer: For a known U.S. interest rate and a given expectation with observe to the future exchange rate a rise in the interest rate paid by euro deposits causes the dollar to depreciate.


Related Discussions:- Effects of a rise in the interest rate

Haberler opportunity cost, Explanation of haberler opportunity cost with di...

Explanation of haberler opportunity cost with diagrams

Trading, suppose that France has a trade surplus with the united kingdom, w...

suppose that France has a trade surplus with the united kingdom, what would you expect to happen to price,wages, and commodity price in France? why? what would happen to the terms

Trade theory, discuss the possibility of trade if factor endowment are iden...

discuss the possibility of trade if factor endowment are identical and tasde is different

Theory of consumer behavior, Q. Write about the assumptions of the theory o...

Q. Write about the assumptions of the theory of consumer behavior based on the cardinal utility approach. 1. Rationality- It is assumed that the consumer is a rational being in

Monopolistic Competition, Suppose that industry 1 is monopolistically compe...

Suppose that industry 1 is monopolistically competitive, with a CES sub-utility function: U(c1,c2 ) = c1? + c?2 , 0 We let the marginal costs be denoted by c1(w,r), and the fixe

Line distinguishing between external and internal goals, Q. "The line disti...

Q. "The line distinguishing between external and internal goals can be fuzzy."  Discuss. Answer: True For instance employment target for export industries when export growth m

Fixed versus floating exchange rates, 1 Answer True or False. Brief explain...

1 Answer True or False. Brief explain your answer. No credit without explanation. a Bretton Woods. During the Bretton Woods system countries with large current account surpluses

Trade and costs, how trade lowers the costs of making computer peripherals ...

how trade lowers the costs of making computer peripherals such as mice and keyboards

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd