2 1.Which of the following countries would you expect to have the highest ratio of trade to GDP?
2.Suppose that over the past decade SA inflation is less than that in Bangladesh. Further assume that during this same period the rand depreciates relative to the Bangladeshi taka. Given this information the real exchange rate
3.Assume that the interest rate in a foreign country is 7% and that the foreign currency is expected to depreciate by 3% during the year. For each dollar that a U.S. resident invests in foreign bonds, he/she can expect to get back an approximate total of
4.Assume that the nominal exchange rate increases by 2%. If prices (both domestic and foreign do not change) we know that a.domestic and foreign goods cost the same in real terms b.domestic goods are now relatively cheaper c.domestic goods are now relatively more expensive d.foreign goods are now relatively cheaper e.both c and d*
5.Suppose you have one rand with which you wish to purchase U.K. (one-year) bonds in period t. Which of the following expressions represents the amount of U.K. pounds you will receive in one year (i.e. period t+1) from purchasing U.K. bonds in period t?
6.Which of the following represents the domestic demand for goods?