Suppose you have been offered a new job in Australia in one year and you want to make sure your investments give you similar spending power. If the interest rate in singapore is 1.80 % and Australian interest is 0.35 %, the AUD/SGD spot exchange ate is 0.97 (0.97 AUD for 1 SGD), finally the one year ahead expected inflation in ustralia is 3.80 % and for Singapore is 2.90 %. The real interest in Australia would if Singapore real interest rate is 0.30 percent. ur Answer:
Suppose you have been offered a new job in Australia in one year and you want to make sure your investments give you similar spending power. If the interest rate in singapore is 1.80 % and Australian interest is 0.35 %, the AUD/SGD spot exchange ate is 0.97 (0.97 AUD for 1 SGD), finally the one year ahead expected inflation in ustralia is 3.80 % and for Singapore is 2.90 %. The real interest in Australia would if Singapore real interest rate is 0.30 percent. ur Answer:
Chapter20: Short-term Financing
Section: Chapter Questions
Problem 4ST
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