Suppose the U.S. one-year interest rate is 3% per year, while a foreign country has a one-year interest rate of 5% per year. Ignoring risk and transaction costs, a U.S. investor should invest in foreign bonds as long as the expected yearly rate of depreciation of the foreign currency is
A) less than 5%.
B) greater than 5%.
C) greater than 2%.
D) less than 2%.
E) less than 1%.
D
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If real GDP is $13,000 billion and aggregate hours are 270 billion, labor productivity equals
A) $6.50 per hour. B) $45 per hour. C) $48 per hour. D) $650 per hour.
The Federal Open Market Committee oversees the money supply through the purchase and sale of government securities
a. True b. False Indicate whether the statement is true or false
Stock in Creole Cuisine Restaurants is selling at $25 per share. Creole Cuisine had earnings of $5 a share and a dividend yield of 5 percent. The dividend is
a. $0.25 and the price-earnings ratio is 5. b. $.25 and the price-earnings ratio is 6.7. c. $1.25 and the price-earnings ratio is 5. d. $1.25 and the price-earnings ratio is 6.7.
A market situation in which a large number of firms produce similar but not identical products is called
A) pure monopoly. B) monopolistically competitive. C) oligopolistic behavior. D) perfectly competitive.