O e. None of the above O d. The foreign interest rate goes up O c. The home interest rate goes up b. The exchange rate (EH/F) goes down The exchange rate (EH/F) goes up O a. EH/F: of home country currency per 1 unit of foreign country currency What happ if prices in the home country (H) go up and prices in the foreign country (F) stay unchanged? Use the Interes Parit Condition and Law of one price questions 1 to 4.

O e. None of the above O d. The foreign interest rate goes up O c. The home interest rate goes up b. The exchange rate (EH/F) goes down The exchange rate (EH/F) goes up O a. EH/F: of home country currency per 1 unit of foreign country currency What happ if prices in the home country (H) go up and prices in the foreign country (F) stay unchanged? Use the Interes Parit Condition and Law of one price questions 1 to 4.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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