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zavuch27 [327]
3 years ago
7

A friend of yours suggests a get-rich-quick scheme: borrow from the nation with the lower nominal interest rate, invest in the n

ation with the higher nominal interest rate, and profit from the interest-rate differential. Which of the following statements explains the flaw in your friend's logic? Nominal exchange rates adjust for the effects of inflation. The scheme would work only if the real interest rates are the same in both nations. The scheme would work only if there is greater inflation in one nation than in the other.
Business
1 answer:
slava [35]3 years ago
3 0

Answer:

Nominal exchange rates adjust for the effects of inflation.

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Answer:

<u>Operational decision</u>

Explanation:

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Does higher exonomic growth lead to low inflation?​
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Answer:

False

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On the contrary, high economic growth may lead to high inflation. Economic growth is indicated by an increase in the value of the gross domestic product GDP. The GDP measures economic growth by calculating the values of all the finished goods and services in a country per period.

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3 0
4 years ago
During 2018 Belair Company was encountering financial difficulties and seemed likely to default on a $600,000, 10%, four-year no
sdas [7]

Answer:

gain from the debt restructuring = $160,000

Explanation:

given data

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rate = 10%

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solution

we get here owed a total that is

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put here value

owed a total = $600,000 + $60,000

owed a total = $660,000

and

gain from the debt restructuring is here as

gain from the debt restructuring = owed a total - settled   .......2

gain from the debt restructuring = $660,000 - $500,000

gain from the debt restructuring = $160,000

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