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Suppose you have one U.S. dollar with which you wish to purchase U.K. (one-year) bonds in period t. ...
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Suppose you have one U.S. dollar with which you wish to purchase U.K. (one-year) bonds in period t. ...
Suppose you have one U.S. dollar with which you wish to purchase U.K. (one-year) bonds in period t. Which of the following expressions represents the amount of U.S. dollars you will receive in one year (i.e., period t+1) from purchasing U.K. bonds in period t?
A) i
B) 1 + i*
C) (1 + i*)Eet+1/Et
D) (1 + i*)Et/Eet+1
E) none of the above
Textbook
Macroeconomics
Edition:
6
th
Authors:
Blanchard, Johnson
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Thanks so much
I'll post more questions
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