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can you explain me how to solve these questions? thanks 1) Consider two countries, the US and UK, if we expected that there will not
can you explain me how to solve these questions? thanks
1) Consider two countries, the US and UK, if we expected that there will not appreciation or depreciation of any of the two countries, then: A. The interest rate in the US in expected to be above the interest rate in the UK B. The interest rate in both countries will be approximately the same C. The interest rate of US will be equal to the interest rate of the UK minus the ination rate of the US D. The interest rate in US is expected to decrease respect to the interest rate in the UK 2) When a country runs a current account decit A. The net payments from the rest of the world are negative B. The net payments from the rest of the world are positive C. The foreign holdings of national assets remain unchanged D. The country also runs a trade balance decitStep by Step Solution
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