Suppose that in country a, a small open economy, there is a positive shock to the propensity of consumers to save: for the same world real interest rate, all of a sudden people are willing to save more.
if the world real interest rate is

the current account balance of country a will improve

the current account balance of country a will deteriorate

the current account balance of country a will deteriorate if it's running a surplus, improve if it's running a deficit

the current account balance of country a will improve if it's running a surplus, deteriorate if it's running a deficit

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)

According to this excerpt, a key part of our national security strategy is

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2