Question
I don't understand exactly where to start and how to solve these questions for my homework, as I am not good with anything related to
I don't understand exactly where to start and how to solve these questions for my homework, as I am not good with anything related to equilibriums and guessing to which side curves shift. Could someone please explain how these are solved in easy ways? Thanks in advance.
3 - Suppose that the currency traders wanted to buy Foreign currency at the current exchange rate. Answer if the current exchange rate is greater than or smaller than the equilibrium exchange rate and if Home rate of return is greater than or smaller than Foreign rate of return at the current exchange rate.
Current exchange rate:
Home rate of return:
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