Assume Sweden has policy interest rate of 4.3% and the real interest rate is 2%. If the interest rate rises to 6% while the real interest rate remains unchanged, what should be the impact on the Swedish Krona?   Question 18 options:   It should appreciate   We do not have enough information to answer the question   It should depreciate   It should remain unchanged

Give typed solution only In January 2023, the exchange rate between Euro (€) and U.S. dollar ($) is $0.99/€.The nominal interest rate for the E.U. and U.S for the next 1-year period is 11%and 8%, respectively. Also, the real interest rate for the E.U. and U.S for the next1-year period is 5% and 6%, respectively. What would you forecast the exchangerate to be at around January 2024?

In a floating exchange rate system:   Question 15 options:   The Balance of payments will always equal the government budget   The Balance of Payments should always be in surplus   The government intervenes to influence the exchange rate   The exchange rate should adjust to equate the supply and demand of the currency

32. Problem 8.40 (IFE, Cross Exchange Rates, and Cash Flows) Algo eBook Assume the Hong Kong dollar (HK$) value is tied to the U.S. dollar and will remain tied to the U.S. dollar. Assume that interest rate parity exists. Today an Australian dollar (A$) is worth $0.50 and HK$4.1. The one-year interest rate on the Australian dollar is 7 percent, while the one-year interest rate on the U.S. dollar is 9 percent. You believe in the international Fisher effect. You will receive A$1 million in one year from selling products to Australia, and will convert these proceeds into Hong Kong dollars in the spot market at that time to purchase imports from Hong Kong. Forecast the amount of Hong Kong dollars that you will be able to purchase in the spot market one year from now with A$1 million. Do not round intermediate calculations. Round your answer to the nearest dollar. HK$