using question 11 format , do questions 12 and 13 , pls do for good rating QUESTION 11Calculate the return for US investors of investing in the following countries. The US is the home country and you do not need to assume thatuncovered interest parity holds. In each case the US interest rate is 0.10. If the interest rate in England is 0.10, the exchange rate is 2.0 and theforward rate is 2.1 what is the return for US investors in England.O 0.15O -0.10O 0.10O 0.075QUESTION 12The interest rate in Pakistan is 0.4, the exchange rate is 1.0 and market participants expect the exchange rate next year to be 0.9.O - 0.15O 0.30O 0.10O 0.25QUESTION 13The interest rate in Iran is 0.20, the exchange rate is 4.0, the forward rate is 4.0 and the risk premium is 0.15.O 0.10O 0.05O -0.05O 0.20

Q 12 Its answer is d : 0.25 Interest rate of Pakistan = 0.4 Exchange rate of Pakistan = 1.0 Market…

QUESTION 12 The interest rate in Pakistan is 0.4, the exchange rate is 1.0 and market participants expect the exchange rate next year to be 0.9. O - 0.15 0.30 0.10 0.25 QUESTION 13 The interest rate in Iran is 0.20, the exchange rate is 4.0, the forward rate is 4.0 and the risk premium is 0.15. 0.10 0.05 -0.05 0.20

QUESTION 12 The interest rate in Pakistan is 0.4, the exchange rate is 1.0 and market participants expect the exchange rate next year to be 0.9. O - 0.15 0.30 0.10 0.25 QUESTION 13 The interest rate in Iran is 0.20, the exchange rate is 4.0, the forward rate is 4.0 and the risk premium is 0.15. 0.10 0.05 -0.05 0.20

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 2PA

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