Week 8 Questions - Tim Lee - Week 8 Questions Tim Lee...

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HW questions:Attempt at least five of the following eight questions by due date and pst in the discussion page for WK8.1) "A balance of trade deficit must always be offset by net capital inflows from abroad." Agree or disagree with this statement and explain.
2) Suppose a Japanese firm buys a 1 year treasury bill with a face value of $10,000 today for $9400. If the value of the dollar declined from 90 to 80 yen during the year, what rate of return does the Japanese firm earn on its investment?

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