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Finanças Internacionais (2.º Ciclo)
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If the dollar interest rate is 4 percent, the euro interest rate is 6 percent, then
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An increase in a country's money supply causes
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A situation in which the quantity of bonds supplied exceeds the quantity of bonds demanded is called a condition of excess supply; because people want to sell ________ bonds than others want to buy, the price of bonds will ________.
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An increase in the interest rate
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What is the expected dollar rate of return on euro deposits with today's exchange rate at $1.10 per euro, next year's expected exchange rate at $1.166 per euro, the dollar interest rate at 10%, and the euro interest rate at 5%?
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In the market for money, business cycle expansions increase income, causing money demand to ________ and interest rates to ________, everything else held constant.
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The monetary approach makes the general prediction that
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When the price of a bond is ________ the equilibrium price, there is an excess demand for bonds and price will ________.
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An increase in the expected inflation rate causes the supply of bonds to ________ and the supply curve to shift to the ________, everything else held constant.
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