Question
Country Year 1: Interest Rate Year 2: Interest Rate Year 3: Interest Rate Year 4: Interest Rate Year 1: Inflation Rate Year 2: Inflation Rate
Country | Year 1: Interest Rate | Year 2: Interest Rate | Year 3: Interest Rate | Year 4: Interest Rate | Year 1: Inflation Rate | Year 2: Inflation Rate | Year 3: Inflation Rate | Year 4: Inflation Rate | Year 1: % Change in IQ | Year 2: % Change in IQ | Year 3: % Change in IQ | Year 4: % Change in IQ |
US | 1.15 | 1.56 | 3.51 | 5.15 | 1.99 | 2.75 | 3.22 | 3.07 | 0 | 0 | 0 | 0 |
South Africa | 10.66 | 7.53 | 6.91 | 7.34 | 5.79 | 6.53 | 5.45 | 6.27 | -28.23 | -14.61 | -1.55 | 6.48 |
Q7. Over the 4-year period, what should have been the annual percentage change in the FX direct quote according PPP? Q8: Over this 4-year period, did the FX Appreciate or Depreciate in "real terms"? Q9. Over this 4-year period, what was the annual percentage uncovered rate of return from the home countrys point of view (Ruh)? Q10. Over this 4-year period, what was the annual uncovered rate of return from the foreign countrys point of view (Ruf)? Q11. Over this 4-year period, you should have borrowed in the _________ country and invested in the _______ country Q12. If you had access to a $1,000,000 line of credit from your preferred borrowing country, over this 4-year period, your net profit from an uncovered interest rate arbitrage would have been __
Please help finish I have the first 6 questions done.
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