Question
7. Implications of IFE Assume Australian interest rates are generally above foreign interest rates. What does this suggest about the future strength or weakness of
7. Implications of IFE Assume Australian interest rates are generally above foreign interest rates. What does this suggest about the future strength or weakness of the Australian dollar based on the IFE? Should Australian investors invest in foreign securities if they believe in the IFE? Should foreign investors invest in Australian securities if they believe in the IFE? 8. Real interest rate One assumption made in developing the IFE is that all investors in all countries have the same real interest rate. What does this mean? 12. PPP Japan has typically had lower inflation than Australia. How would one expect this to affect the Japanese yen's value? Why does this expected relationship not always occur?
8. Real interest rate One assumption made in developing the IFE is that all investors in all countries have the same real interest rate. What does this mean?
12. PPP Japan has typically had lower inflation than Australia. How would one expect this to affect the Japanese yen's value? Why does this expected relationship not always occur?
can you please answer those ?
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