A.An increase in the real exchange rate and an increase in disposable income improve the current account.B.A decrease in the real exchange rate and a decrease in disposable income ...
If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, and the expected return on dollar depreciation against the euro is 4 percent, thenA.an investor shou...
Answer:The Central bank must always be willing to trade currencies at the fixed exchange rate with the private actors in the foreign exchange market to hold exchange rate constant....