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If a country can give up one unit of future consumption and as result increase its current consumption by 0.94 units, its real rate of interest must be: (a) 1.4% (b) 3.4% (c) 6.4% (d) 9.4%

If a country can give up one unit of future consumption and as result increase its current consumption by 0.94 units, its real rate of interest must be: (a) 1.4% (b) 3.4% (c) 6.4% (d) 9.4%

International Financial Management
International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter11: Managing Transaction Exposure
Section: Chapter Questions
Problem 57QA
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If a country can give up one unit of future consumption and as result increase its current consumption by 0.94 units, its real rate of interest must be: (a) 1.4% (b) 3.4% (c) 6.4% (d) 9.4%
Transcribed Image Text:If a country can give up one unit of future consumption and as result increase its current consumption by 0.94 units, its real rate of interest must be: (a) 1.4% (b) 3.4% (c) 6.4% (d) 9.4%
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