An Australian investor buys a U.S. Treasury bond that has a price of $10,000 . pays 5 percent interest, and matures in a year. Between the purchase date and the maturity date, the exchange rate changes from $1 = AUD 5.0 to $1= AUD 5.2 . What will be the Australian investor's rate of return from the U.S. bond?
a. 4 percent
b. 7 percent
c. 9.2 percent
d. 12 percent
e. 25 percent
c
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In the above figure, if price is equal to P4, the firm will
A) earn positive economic profits. B) incur an economic loss. C) earn zero economic profits. D) shut down.
If a firm shuts down in the short run, it will:
a. incur losses equal to its fixed costs. b. produce at the output level where MC = MR. c. reduce its losses to zero. d. do this because P > AVC. e. have total revenue greater than total fixed costs.
In a competitive market, is the long-run supply curve typically more elastic than the short-run supply curve, or is it less elastic than the short-run supply curve?
Budget maximization by bureaus result in a smaller budget than that desire by the median voter
Indicate whether the statement is true or false