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Murljashka [212]
3 years ago
10

A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of i

ts currency to appreciate.
Business
1 answer:
Pavlova-9 [17]3 years ago
6 0

Answer:

true

Explanation:

The exchange rate is the rate at which one currency is exchanged for another currency

If interest rate is higher in a country compared to other countries, investors would be interested in investing in that country because they would earn a higher return for their investment.

As a result of the higher flow of funds into the economy with the higher interest rate, the demand for the country's currency increases. If the demand increases relative to supply, the value of that currency relative to other currencies increases and its exchange rate increases. this is what is referred to as currency appreciation

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tatyana61 [14]

Answer:

The correct answer is: unitary elasticity.

Explanation:

Unitary elasticity takes place when the change in quantity demanded of a good or service represents a proportional change in price. Under this scenario, the elasticity -<em>measure of how prone is to react a good or service in price due to change in other factors, ceteris paribus</em>- equals to 1.

6 0
3 years ago
Suppose the U.S. Treasury announces plans to issue $50 billion of new bonds. Assuming the announcement was not expected, what ef
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Answer:

Prices would decline and interest rates would rise

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This is because the market will be flooded with additional 50 billion dollars of bond increasing the supply causing the price to fall. Interest rate are inversely proportional to prices thus interest rate will rise.

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6 0
2 years ago
Z chooses a life income with 10 year period certain settlement option for the annuity Z owns. Z dies after 15 years of receiving
insens350 [35]

Answer: Nothing

Explanation:

From the question, we are informed that Z chooses a life income with 10 year period certain settlement option for the annuity Z owns and that Z dies after 15 years of receiving income benefit payments. Based on the above situation, Z's beneficiary receive will receive nothing.

This is because Z has already gotten the income benefits payment since it's for a 10 year period

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