Without referring to your notes (economics)...... referring, reference, forward, growth

mfleming1983

1) In what growth theory do we find a reference to the opportunity cost of working to women?
2) Give me a formula to calculate a forward bid rate.

wilslm

1. Neoclassical growth theory
2. Stumped on this one. But If I am to blind guess I would use the normal formula with the spot (bid) rate.

bdavi77962

Well done sir on 1.
I’ll post the answer to 2 if nobody else does in 30 minutes.

laurab

spot bid
domestic bid
foreign offer
dc/fc

kkn006

Indeed.
Where currencies are quoted F
Forward Bid = Spot bid * (1+Domestic Bid Interest Rate)/1+Foreign Ask Interest Rate)

NakedPuts

Can you provide an explanation for 1?

MiniMe7

soddy1979 Wrote:
——————————————————-
Neoclassical growth theorists hold that economic
growth is independent of population growth (as
opposed to classical theorists). Neoclassical
theorists believe that population growth is a
function of the opportunity cost of women to work,
where an increase in this cost leads to more women
working and thus lower birth rates. Population
growth is also effected by improvements in
healthcare and thus lower death rates.
Thanks.

anshultongia

Here’s one for ya:
1. How do you get market prices from factor cost?
2. Differentiate between the International Fischer relation and Relative Purchasing Power Parity.

DoubleDip

1. Factor cost + taxes - subsidies = market price
2. International Fisher relation measures expected change in inflation rate to the difference between the two countries’ nominal interest rates for that time.
while
Relative PPP measures the inflation rate in each country to the change in the market exchange rate

NakedPuts00

Idreesz, nicely done. Remember a key thing about Int’l Fischer relation is that it assumes the real exchange rate is constant. Assuming that, a change in the interest rate is completely explained by a change in the inflation rate.