In the case where interest rates are lower in Japan, which of the following is an example of a "carry trade"
a. Increase borrowing in the US, convert to Yuan and invest in financial assets in Japan
b. Increase borrowing in Japan and invest in Japan
c. Increase borrowing in Japan, convert to Dollars and invest in the US
d. Increase borrowing in the US and invest in the US
c
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Because of the income effect, the labor supply curve is
A) eventually backward bending as wage rate increases. B) positively sloped. C) horizontal. D) vertical.
Explain the moral hazard that automobile insurance companies face. What methods do they employ to try to mitigate this problem? Explain carefully
What will be an ideal response?
Which of the following is true about the United States?
a. There has only been one recession in U.S. history. b. There have been recessions every couple of years throughout U.S. history. c. Recessions have never occurred in the United States. d. Recessions have occurred periodically in U.S. history. e. Recessions in the United States have generally been worse than in other countries.
If the multiplier is 4, a decrease in spending equal to $80 billion will be accompanied by a decrease in GDP of
a. $480 billion. b. $320 billion. c. $240 billion. d. $84 billion. e. $48 billion.