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ECN 601 Week 8 Discussion 1
Using
the concept of “carry trade,” explain how a decrease in U.S. interest rates
could affect the EUR/USD exchange rate. Given this change in exchange rate, how
would firms and customers be affected?
ECN 601 Week 8 Discussion 2
How
do economists define a “bubble”? Provide an example of an asset market that you
think could be the next bubble and explain why. (Do not use the examples cited
in your textbook).
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