If the 12-month interest rates for the United States and the United Kingdom are 6% and equal, and £1 = $2 in the spot market, then what do you expect the 12-month forward rate to be?
A) 2.10
B) 1.90
C) 2.00
D) 2.11
C
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If a union restricts the supply of labor but cannot change the demand for labor, the union ________ the wage rate and ________ the level of employment
A) raises; decreases B) raises; increases C) lowers; decreases D) lowers; increases
When a firm practices perfect price discrimination,
a. Consumer surplus is maximized b. Producer surplus is minimized c. Producer surplus is maximized d. None of the above
Health care costs have been increasing dramatically in the U.S.
A. True B. False C. Uncertain
In which case below does a person's purchasing power from saving increase the most?
a. the nominal interest rate = 10% and inflation = 8% b. the nominal interest rate = 9% and inflation = 6% c. the nominal interest rate = 8% and inflation = 4% d. the nominal interest rate = 7% and inflation = 2%