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Anvisha [2.4K]
2 years ago
14

Based on your understanding of the relationship between relative inflation rates and exchange rates, identify whether the preced

ing statement is valid or invalid.
a. The statement is valid, because the nominal interest rate is the sum of the real interest rate plus inflation, so higher inflation rates would result in higher interest rates.
b. The statement is invalid, because the nominal interest rate is independent of the inflation rate.

If companies borrow from countries with low interest rates, the potential gains from the interest savings will likely be ______________ by the losses from currency appreciation. The currency of a country with a higher inflation rate than the U.S. inflation rate will ____________ over time against the dollar.
Business
1 answer:
lys-0071 [83]2 years ago
6 0

Answer:

b.the statement is invalid because the nominal

Explanation:

pa brainliest po

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Answer:

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Explanation:

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Should eyewitness testimony be allowed in the courtroom? Write at least three paragraphs discussing your position.
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3 years ago
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Acme-Jones Corporation uses a weighted-average perpetual inventory system. August 2, 24 units were purchased at $23 per unit. Au
Gnoma [55]

Answer:

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Explanation:

Giving the following information:

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