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.
May 25, 2008
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 ...
May 23, 2008