Assignment:
Q1. Suppose the dollar/rupiah rate is fixed, but Indonesian prices are rising faster than U.S. prices. Is the Indonesian rupiah appreciating or depreciating in real terms?
Q2. Comment on the following statement. ‘‘It makes sense to borrow during times of high inflation because you can repay the loan in cheaper dollars.’’
Q3. Which is likely to be higher, a 150% ruble return in Russia or a 15% dollar return in the United States?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.