Answer:
D. -4 percent.
Explanation:
Rate of return on Euro assets = 8%
Rate of return on Dollar assets = 4%
As per the Uncovered Interest Parity condition,
Expected rate of depreciation of the dollar
= Rate of return on Dollar assets - Rate of return on Euro assets
= 4% - 8%
= -4%
Therefore, The expected rate of dollar depreciation must be -4%.
Answer: d
Explanation: Gross domestic product is the best way to measure economic growth. It takes into account the country's entire economic output.
Per capita gross domestic product (GDP) is a metric that breaks down a country’s GDP per person. It is calculated by dividing GDP over a country’s population. GDP per capita is a universal measure globally for gauging the prosperity of nations. Worldwide it is used by economists alongside GDP to analyze the prosperity of a country and its economic growth.There are three main factors that drive economic growth: Accumulation of capital stock. Increases in labor inputs, such as workers or hours worked. Technological advancement.
I think more varied if you added additional mutual funds you would have a more diverse portfolio.
Answer:
When interest rate rises, the quantity of money demanded reduces
Explanation:
As interest rate increases firms seeking to borrow money for capital stock expansion are likely not going to go ahead with it. The reason is simply because, interest rate and money demanded have an inverse relationship. As interest rate rises money demanded falls because it means that for any amount of money borrowed the interest rate attached to it is higher making the cost of borrowing heavier on the borrower.
