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%
Chapter11: Managing Transaction Exposure
Section: Chapter Questions
Problem 57QA
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
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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