Do interest rate differentials predict exchange rates?
Interest rates are determined by supply, demand and the Federal Reserve Bank. If there is too much money or not enough demand rates fall. If there is too much demand or not enough money rates will rise. The FED will change their borrowing rate to try and pilot the economy on a longer term outlook.
You must make a minimum of four substantive contributions on two separate days of the learning week to each discussion topic, with the first to the professor. Policy: Post your response to the first discussion question early in the learning week (no later than Wednesday), and then respond to a minimum of three other classmates’ posts using critical thinking skills – meaningful and thought provoking. Policy: Your initial post must be 3 paragraphs 6 lines in length with a minimum of 2 peer-reviewed references in APA Format. No Wikipedia, BLOGS with ads from yahoo.com or google.com, as they present a biased opinion. Use peer-reviewed articles to support your thoughts!
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