Question

Suppose that the interest rate on dollar accounts is equal to 2% (i$ = 0.02), the interest rate on Polish zloty accounts is equal to 4.5% (izł = 0.045), and the expected exchange rate between the dollar and the zloty one year from now is ee = 4 zł/$. Assume that the (uncovered) interest parity holds.

What would the spot rate, e, be if the expected exchange rate remains the same and the interest rate on Polish assets declines to izł = 0.02? (Answer in zł/$.)

Answer 1

Explanation:

1. to t8ttf you gigkg7fufkvmgkvmvm jbk ticu8 ivhh ypg7fug8
2. ibig8g8y8h8y968bkbm9
3. ig7f8g8y8y8y

h

1. j
2. I
3. h

Answer 2

Answer:

mark me as brainlist

please

please