Prediction of future spot rate from forward rate

Assignment Help Macroeconomics
Reference no: EM1313134

1. If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)

2. Against the Peso?_______ And by what %?

3. Against the Real?_______And by what %?

4. In 2001, the U.S. interest rate was 2%. What were the interest rates in the following countries at the same date, according to covered interest rate parity? (round to nearest integer)

Argenine interest rate________%

Reference no: EM1313134

Questions Cloud

What is the frictional force, acting on the car : A car of mass 960 travels at a speed of 30 along the straight road. The driver sees a red traffic light ahead, and applies brakes. The coefficient of friction between the car tyres and the road is 0.88. Take the acceleration due to gravity to be 9.80..
Calculation of cost per equivalent unit for materials : Calculation of cost per equivalent unit for materials - The company wishes to have 10% of the next month's sales on hand at the end of each month.  Budgeted production for November is?
Hypotheses for single proportion : Write the null and alternative hypotheses you would use to test the following situation.
Explain capital budgeting involves calculation : Explain Capital budgeting involves calculation of net present value and What is this project's internal rate of return
Prediction of future spot rate from forward rate : If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)
What is the length of each edge : A weight (with a mass of 90 kg) is suspended from the point near the right-hand end of a uniform boom with a mass of 71kg. To support the uniform boom a cable runs from this same point to a wall (the left-hand vertical coordinate) and by a pivot on t..
Calculation of cost per equivalent units : Calculation of cost per equivalent units - What is the cost per equivalent unit for direct labor
What was the speed of bullet at impact with the block : What is the terminal speed for an 84.00 skier going down a 38.0 degree snow-covered slope on wooden skis = 0.06? Assume the skier is 1.70 m tall and 0.500 m wide.
Correlation coefficient between two variables : The paired data below consist of the test scores of 6 randomly selected students and the number of hours they studied for the test.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Okun law and unemployment inflation trade off

This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.

  Efficient allocation of resources

Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?

  Questions on aggregate demand and disposable income

Illustrate the position of US economy over the next couple of years using aggregate demand and supply curves if these expectations are to be realized.

  Compute the insurance amount against losses

Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function U(M) √M..  He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0.

  Production and cost estimation

Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.

  Computing canadian and south korean opportunity cost

Assume that there're 10 million workers in Canada and South Korea and each worker in Canada and South Korea can manufacture four cars per year.

  True or false questions about incurring loss and pure

Indicate whether each of the following statements is true or false and explain why.

  Calculate cournot nash equilibrium

Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.

  Find out the pricing strategy to increase revenues

In each of the cases listed below determine what this consumer needs to do (in terms of purchasing X and Y) to maximizes their utility.

  Explanation of social welfare under tariff

What is autarky price and quantity equilibrium for both home and foreign? What is the open trade price and volume under free trade.

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  Supply and foreign exchange market operation

According to the quantity theory of money, what is the effect of increase in quantity of money?

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