Covered interest arbitrage ensures
A) exchange parity.
B) purchasing power parity.
C) interest parity.
D) All of the above.
C
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Which of the following statements is true of optimization?
A) Optimization analysis only relates to the financial budget of an economic agent. B) Individuals who optimize do not consider costs when choosing the most feasible alternative. C) Economic agents can optimize only when they are able to perfectly estimate all future costs and benefits. D) Economic agents who optimize attempt to choose the best feasible option, given the information that they have.
Along a production possibilities curve that is concave to the origin, the opportunity cost of production of the good on the horizontal axis ____ as we move down along the curve
a. Decreases b. Increases c. remains constant d. first decreases, then increases
Are the effects of an increase in aggregate demand in the aggregate demand and aggregate supply model consistent with the Phillips curve? Explain
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Point U is:
A. efficient. B. attainable. C. inefficient. D. unattainable.