True or False econ repost
Relative PPP is a better approximation of reality when one of the two countries is suffering hyperinflation and the other is not.
True or False? E=exchange rate Suppose E$/euro = 3/2 and E$/pound = 2 and there is no trade friction, the no arbitrage condition implies that E pound/euro = 2
T or F, and a little explanation would be helpful. Relative PPP (purchasing power parity) is a better approximation of reality when one of the two countries is suffering hyperinflation and the other is not.
as demand increase in NY, price goes up, and as supply increase in Tokyo, price goes down, they eventually will equal?
I need some help on the following question, thanks. e = euros Suppose quotes for the dollar-euro exchange rate, E$/e, are as follows: in New York $1.50 per euro, and in Tokyo $1.55 per euro. Describe how investors use arbitrage to take advantage of the difference in exchange r...