1) Assume Turkish lira (TL) is expected to depreciate by 10% over the next year against US dollar. If the Turkish interest rate is15%, what would be the US interest rate that can make a Turkish investor to be willing to buy US securities today? Assume capital is perfectly mobile between Turkey and US.
1) Assume Turkish lira (TL) is expected to
against US dollar. If the Turkish interest rate is15%, what would be the US interest rate that
can make a Turkish investor to be willing to buy US securities today? Assume capital is
perfectly mobile between Turkey and US.
2-) If the
and the lira price of foreign currency is 1.20, what is the real exchange rate? What is the
meaning of this rate for the competitiveness of Turkish goods?
3-)With the help of an IS-LM diagram show and explain the effect of restrictive
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