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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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Follow me for more points!!​
Hatshy [7]
Okayyy thank you so much
4 0
3 years ago
Read 2 more answers
dakari, ceo of a successful medical supply company, is constantly reading press releases and news articles about his competition
OLga [1]

In putting in so much effort to find out about his competition and the products they offer, Dakari is most likely a. evaluating opportunities

There are several ways to learn about new opportunities in the market and some of them include:

  • Finding out what your customers want
  • Finding out what the trends your industry is moving towards
  • Finding out what your competitors are up to

Your competitors will constantly be trying to make better products in order to capture more market share. You can therefore look at what they are doing to find out what new thing you can be doing.

This is what Mr. Dakari is doing so we can conclude that he is evaluating opportunities.

<em>Find out more at brainly.com/question/8493674.</em>

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