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Home Q & A Board Other Fields Homework Help Business Economics
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BurningAshe BurningAshe
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6 years ago
In a crawling peg regime, ________.
 
  A) the value of the currency is fixed to a basket of commodities
  B) higher inflation is permitted
  C) several anchor currencies are used in succession
  D) the currency may gain value, but cannot lose value

Question 2

The Fisher equation implies that an increase in the nominal rate of interest relative to the real rate indicates that ________.
 
  A) inflation is expected to rise
  B) inflation is expected to decrease
  C) the real cost of borrowing has increased
  D) the real cost of borrowing has decreased
  E) none of the above
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bcspearsbcspears
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6 years ago
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BurningAshe Author
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#2
6 years ago
Were some really tough homework problems! Thanks for answering all of them correctly
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