Given a one-year Canadian bond with a yield of 8 percent, what will be the U.S. investor's rate of return at maturity if the Canadian dollar appreciates 10 percent against the U.S. dollar?
a. 2 percent
b. 8 percent
c. 10 percent
d. 18 percent
e. 25 percent
d
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Table 8-3 Quantity Price (dollars) Total Cost (dollars) 1 10 5 2 9 8 3 8 12 4 7 17 5 6 23 Explain how much the firm shown in Table 8-3 should produce, first using total profit and then using marginal analysis.
What will be an ideal response?
Perfect competition and monopolistic competition are similar because under both market structures,
a. there are zero economic profits in the long run. b. production takes place at the least-cost combination. c. there are few firms. d. entry is difficult. e. differentiated products are produced.
When the economy is experiencing high inflation and high unemployment at the same time, then it is experiencing:
a. stagnation. b. deflation. c. reflation. d. stagflation. e. innation.
The Japanese demand curve for dollars is downward-sloping because a:
a. higher number of yen per dollar means U.S. goods are cheaper in Japan. b. lower number of yen per dollar means U.S. goods are cheaper in Japan. c. lower number of yen per dollar means U.S. goods are more expensive in Japan. d. lower number of yen per dollar means U.S. goods are less expensive in the U.S.