To ensure interest rate parity, a decrease in the interest rate on Euroyen relative to Eurodollar deposits will require a greater expected appreciation of the Japanese yen against the U.S. dollar
a. True
b. False
Indicate whether the statement is true or false
False
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An aggregate supply curve that is either horizontal or upward sloping, depending on whether the absolute price level increases as firms produce more output is called:
A) short-run aggregate supply curve. B) long-run aggregate supply curve. C) potential GDP. D) NAIRU.
What are the different components of aggregate expenditure and how do they together form the aggregate expenditure line?
Angelee works for a major corporation overseeing quality control, and she earns $50,000 per year. She uses about ten percent of her pay to purchase household items, such as appliances, and spends another two percent on travel. She buys stock with about five percent of her pay. Explain which of her actions are part of the factor market and why?
What will be an ideal response?
A natural monopoly
A. Has high marginal costs. B. Has low barriers to entry. C. Will charge high prices if unregulated. D. Charges a lower price than a competitive firm.