The dollar return on a foreign investment is less than the interest rate on the foreign asset, if the foreign currency depreciates against the U.S. dollar between the purchase date and the maturity date
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose there is a decline in the demand for the product labor is producing. Furthermore, the price of capital, which is complementary to labor, increases. Thus, the demand for labor
A. will decrease. B. will increase. C. may either increase or decrease. D. will not change.
The long-run Phillips curve is ________ curve, and moving along the long-run Phillips curve, an increase in the inflation rate is associated with ________ in the natural unemployment rate
A) a downward sloping; no change B) a vertical; no change C) a downward sloping; a decrease D) a horizontal; no change E) an upward sloping; an increase
Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 5, Q = 125) and (L = 6, Q = 152). Then the marginal product of the 6th worker is
a. 25 units of output. b. 27 units of output. c. 37 units of output. d. 162 units of output.
The MRP curve for labor
A. lies below the firm's labor demand curve. B. is the firm's labor demand curve. C. lies above the firm's labor demand curve. D. intersects the firm's labor demand curve from above.