Business, 20.11.2019 02:31 coolkitty35
Suppose the dollar interest rate and the pound sterling interest rate are the same, 5 percent per year. what is the relation between the current equilibrium $/₤ exchange rate and its expected future level? suppose the expected future $/₤ exchange rate, $1.52/₤, remains constant as britain’s interest rate rises to 10 percent per year. if the u. s. interest rate also remains constant, what is the new equilibrium $/₤ exchange rate?
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Suppose the dollar interest rate and the pound sterling interest rate are the same, 5 percent per ye...
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