Impact on foreign exchange markets
Question: What would be the impact on foreign exchange markets if Congress takes too long to raise the US debt ceiling and some of the debt is in danger of default?
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a. Is there a profitable arbitrage situation? Describe it. b. Compute the percentage bid-ask spreads on the pound and euro.
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What is the rate of return to an American investor if the exchange rate is still $1.60/£?0
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What would be the impact on foreign exchange markets if Congress takes too long to raise the US debt ceiling and some of the debt is in danger of default?
describe how economics works in the real world. These terms will be defined so that they will be understood throughout the discussion of the economy
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