Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect a. political instability in the United States. b. a worsening of the U.S. balance of payments. c. an appreciation of U.S. currency. d. that a "dirty float" will emerge.
Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect a. political instability in the United States. b. a worsening of the U.S. balance of payments. c. an appreciation of U.S. currency. d. that a "dirty float" will emerge.
Chapter4: Exchange Rate Determination
Section: Chapter Questions
Problem 22QA
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Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect
a. political instability in the United States.
b. a worsening of the U.S. balance of payments.
c. an appreciation of U.S. currency.
d. that a "dirty float" will emerge.
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