Suppose the Australian interest rate is 6 per cent and the world interest rate is 5 per cent. The Australian interest differential is

Question

Quizplus · Accepted Answer

The Australian interest differential is the difference between the Australian interest rate and the world interest rate. In this case, the Australian interest rate is 6 per cent and the world interest rate is 5 per cent, so the Australian interest differential is 6% - 5% = 1%.

Suppose the Australian Interest Rate Is 6 Per Cent and the World