Question

请教一道宏观经济学题

Suppose the domestic and foreign interest rates are i = 12%, i* = 10%, and that the domestic currency is expected to appreciate by 3% during the coming year. Given this information, we know that:

individuals will only hold domestic bonds.

individuals will only hold foreign bonds.

individuals will be indifferent about holding domestic or foreign bonds.

the interest parity condition holds.
还有一道

Suppose two countries are engaged in a fixed exchange rate regime. Also assume that financial market participants believe this policy is credible. Given this information, we know that:

the exchange rate of foreign for domestic currency, E = 1.

E > 1.

domestic and foreign interest rates are equal, i = i*.

individuals will only hold domestic bonds.

Answer 1

1.domestic rate高，还appreciate，individual肯定hold domestic bonds only
2. fixed exchange regime 央行先宣布一个汇率，然后通过reserve维持。所以A,B，D错.选C,i=i*