Suppose interest parity does not hold exactly, but the true relationship is r=r+(ee - e)/ (e+rho) where rho is a term measuring the differential riskiness of domestic versus foreign deposits. suppose a permanent rise in domestic government spending, by creating the prospect of future government deficits, also raises rho, that is, makes domestic currency deposits more risky. evaluate the policy’s output effects in this situation.

On july 7, you purchased 500 shares of wagoneer, inc. stock for $21 a share. on august 1, you sold 200 shares of this stock for $28 a share. you sold an additional 100 shares on august 17 at a price of $25 a share. the company declared a $0.95 per share dividend on august 4 to holders of record as of wednesday, august 15. this dividend is payable on september 1. how much dividend income will you receive on september 1 as a result of your ownership of wagoneer stock