Does the effect of Turkish inflation on the decline in the Lira's value support the PPP theory? How might the relationship be distorted by political conditions in Turkey?
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- Q3-3 Under a flexible-rate system, when the BP curve is flatter than the LM curve (i.e., there is relative capital mobility), an autonomous increase in foreign interest rates will have what impacts on the domestic interest rate and domestic national income? Select one: a. domestic interest rate will increase, domestic national income will decrease b. domestic interest rate will increase, domestic national income will not change c. domestic interest rate will increase, domestic national income will increase d. domestic interest rate will not change, domestic national income will decreaseWhat is the effect on a country’s economy of an artificially lowexchange rate? Of an artificially high exchange rate?Which of the following is considered to a leading indicator of a countrys economy? a. money supply b. stock prices c. duration of unemployment d. interest rate spread
- Question Which of the following is a determinant of exchange rates? Answer a. A change in consumer preferences b. A change in productivity c. A change in real interest rates d. all of theseWhat are the changes in the following parameter / parameters in order to increase the value of the national currency and reduce the inflation rate? And what are the effects of these changes on currency risk, interest rate risk, price risk, country risk, GNP, current account deficit? Analyze and interpret.Moody's rating downgraded from 'Ba' to 'B', Foreign direct investment amount is low, Portfolio investments are high, Inflation rate: 15%Interest rate: 10%€ / $ = 0,2755Suppose that a country decided to increase policy interest rates . a)Using the asset approach show how this policy is expected to influence the value of this country's currency. Show your answer on a graph as well.
- Why did conditions reverse in 2017, with the yuan appreciating against the dollar? What does this say about how the foreign exchange market works?When one currency declines against the dollar, it may correspond to lower inflation in the foreign country and as a result, historical operating income and ROI's will be higher. True or False ?What risk is due to changes in the level of interest rate in the economy and may affect industries at the same time? a.systematic risk b. inflation rate risk c.foreign exchange rate risk d.interest rate risk