What are the basic factors that determine the value of a
currency? In equilibrium, what is the relationship between these
factors? How might the relatively high levels of inflation and
interest rates in Thailand affect the baht's value? (Assume a
constant level of U.S. inflation and interest rates.) Assume
that Thailand's central bank wishes to prevent a withdrawal of
funds from its country in order to prevent further change sin
the currency's value. How could it accomplish this objective
using interest rates? Consider an economy with two types of
firms, S and I. S firms always move together, but I firms move
independently of each other. For both types of firms there is a
60% probability that the firm will have a 15% return and a 40%
probability that the firm will have a -10% return. What is
the... An investment offers to quadruple your money in 24 months
(don t believe it). What rate per three months are you being
offered? An investment offers to quadruple your money in 24
months (don't believe it). What rat