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

Causes of the u.s. savings and loans crisis, Q. Explain the causes of...

Q. Explain the causes of the U.S. Savings and Loans crisis of the early 1980s. Answer: On the one hand permitting S&L to make a lot riskier loans for instance loans on co

International trede, explain the newo clacical theory of international tred...

explain the newo clacical theory of international trede

Gravity model of trade, I need to use the gravity model to analyse the eff...

I need to use the gravity model to analyse the effects of the euro on tradeflows. is this something u can do?

Existence of external economies of scale, (a) Consider there are two countr...

(a) Consider there are two countries (country 1 and country 2) with two goods (X and Y). Further, under the assumptions of the Ricardian model, country 1 specialise in goods X. De

Internal economic environment, In the International Medical Center there ar...

In the International Medical Center there are internal influences. The strategic capability of the project consists of competencies and resources. The strengths and weaknesses of p

Is europe an optimum currency area, Q. Is Europe an optimum currency ...

Q. Is Europe an optimum currency area? Answer: Yes the area's economy is strongly integrated with its own: most EU members export as of 10 to 20 percent of their output

Describe differences and similarities between emergency, Question A hyp...

Question A hypothetical utility company has two facilities that are virtually identical. They are nuclear power plants and one is located in California and the second one in Fl

Fixed exchange rates, Q. "Fixed exchange rates are not even an option...

Q. "Fixed exchange rates are not even an option for most countries." Discuss. Answer: Durable fixed exchange rate arrangements may possibly not even be possible unless c

Nationalization of the YPF, I need a research essay about the effects socia...

I need a research essay about the effects socially and economically of nationalization of the YPF with 8 pages. How much it costs?

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