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Home Q & A Board Other Fields Homework Help Business Economics
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Chako Chako
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8 years ago
When domestic and foreign currency bonds are imperfect substitutes, the domestic interest rate (R) can be written as
A) R = R + (Ee - E)/E + ρ.
B) R = R - (Ee - E)ρ.
C) R = R - (Ee - E)/E.
D) R = R - (Ee - E)/E + ρ.
E) R = R - (Ee + E)/E + ρ.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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#1
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8 years ago
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Chako Author
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#2
8 years ago
Makes a lot of sense, and you're right.. I appreciate the input
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#3
7 years ago
Thanks for the feedback, I'm sure others will appreciate it too
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