Suppose a British bank offers a 3 percent interest rate while a U.S. bank offers a 7 percent interest rate. People must expect the U.S. dollar will
A) depreciate 4 percent.
B) appreciate 4 percent.
C) appreciate 10 percent.
D) depreciate 10 percent.
A
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A landlord requiring potential tenants to provide a rental history is an example of:
A. screening. B. signaling. C. statistical discrimination. D. building a reputation.
For a monopoly, the socially efficient level of output occurs where
a. marginal revenue equals marginal cost. b. average revenue equals marginal cost. c. marginal revenue equals average total cost. d. average revenue equals average total cost.
(Consider This) Which of the following best explains why unemployment rises significantly during a recession?
A. Wages are sticky both upward and downward. B. Wages are flexible both upward and downward. C. Wages are flexible upward but sticky downward. D. Wages are sticky upward but flexible downward.
What is typically the main cost of pursuing a college education?
A. income forgone by not working B. tuition C. room and board D. books and supplies