Interest ratesHow do interest rates link money market and foreign exchange market? Which state body determines the value of the interest rate and what instruments are used to regulate it?How – through which macroeconomic channels do interest rates affect markets for goods and services?

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Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 25CTQ: If a countrys currency is expected to appreciate in value, what would you think will be the impact...

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Interest rates

1. How do interest rates link money market and foreign exchange market?
2. Which state body determines the value of the interest rate and what instruments are used to regulate it?
3. How – through which macroeconomic channels do interest rates affect markets for goods and services?

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