What is likely to be effect on the current exchange rate

Assignment Help Business Economics

Reference no: EM131112451

What is likely to be the effect on the current exchange rate if the interest rate on the 60 day pound denominated bonds declines to 8 percent, and the dollar interest rate and the expected exchange rate are unchanged?

Reference no: EM131112451

Questions Cloud

The food and drug administration : The following are actions that the Food and Drug Administration (FDA) can take in regulating cosmetics EXCEPT:

What will happen to the pattern of trade : Supose new, high- yield grains are introduced to Norway and the number of labor hours needed to grow a ton of grain there is cut 5 hours to 2.5 hours. What will happen to trade between Norway and Spain? If the number of labor hours needed to growna t..

Relationship in economic growth rate and unemployment rate : What factors might contribute to low or high growth rates in a country? How can sustainable long-run economic growth rate be realized? What are the roles of the government in achieving sustainable long-run economic growth? What is the relationship be..

Suppose that as the result of the crisis : Suppose that as the result of the crisis in Greece, the Euro depreciates against the US dollar. Why should you care when the US dollar strengthens relative to other currencies? Describe the ways this could impact your life and that of your friends an..

What is likely to be effect on the current exchange rate : What is likely to be the effect on the current exchange rate if the interest rate on the 60 day pound denominated bonds declines to 8 percent, and the dollar interest rate and the expected exchange rate are unchanged?

Gasoline aimed at correcting negative externality : How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer. How does the price elasticity of demand for gasoline imp..

When the quality of medical services rises : When the quality of medical services rises, what happens to the demand curve for that service? What if quality increases in ways that are unobservable to the consumer, such as a reduction in the probability of adverse side effects?

What macro-environmental factors external to the company : What macro-environmental factors external to the company should Southwest Airlines be most concerned about? How do these factors affect Southwest Airlines? Explain.

Estimates of effect time lags for fiscal policy : What might account for the fact that estimates of effect time lags for fiscal policy often differ considerably across different types of government expenditures?

User Account

All Pages