O e. None of the above O d. The foreign interest rate goes up O c. The home interest rate goes up b. The exchange rate (EH/F) goes down The exchange rate (EH/F) goes up O a. EH/F: of home country currency per 1 unit of foreign country currency What happ if prices in the home country (H) go up and prices in the foreign country (F) stay unchanged? Use the Interes Parit Condition and Law of one price questions 1 to 4.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter29: International Finance
Section: Chapter Questions
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None of the above
О е.
O d. The foreign interest rate goes up
О с.
The home interest rate goes up
O b. The exchange rate (EH/F) goes down
The exchange rate (EH/f) goes up
O a.
EH/F: of home country currency per 1 unit of foreign country currency
What happ if prices in the home country (H) go up and prices in the foreign country (F) stay unchanged?
Use th Interest Parity Condition and Law of one price questions 1 to 4.
Transcribed Image Text:None of the above О е. O d. The foreign interest rate goes up О с. The home interest rate goes up O b. The exchange rate (EH/F) goes down The exchange rate (EH/f) goes up O a. EH/F: of home country currency per 1 unit of foreign country currency What happ if prices in the home country (H) go up and prices in the foreign country (F) stay unchanged? Use th Interest Parity Condition and Law of one price questions 1 to 4.
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