PLEASE ANSWER WITHIN 35 Min | SHORT ANSWERS

1- Assume that you are the CFO of Microsoft Corporation, which mainly sells its products in developing economies. During a given year, the US dollar has significantly appreciated against the basket of developing economies currencies. How would it affect the Microsofts income, which is headquartered in the US?

2- The budget deficit has been rising in many oil-producing countries caused by the lower oil prices. Assuming that these countries have an independent monetary policy, how can rising Governments budget deficit in those countries influence the interest rates (Specify the direction of the interest rate in your answer).

3- Assume that Oman is planning to impose taxes on personal income (from 0% to 10%) for its residents, and you as a financial advisor have been asked how would it impact the interest rates. Assuming that Oman has an independent monetary policy, how can the introduction of personal taxes affect the interest rate in Oman?