Arbitrage may not achieve purchasing power parity due to
a) trade costs
B) dealer markups that vary between nations
C) taxes on income
D) high interest rates
Ans: a) trade costs
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Inflation adjusted hourly wages for the average hourly worker is _______ today than it was in 1973.
A. higher B. lower C. about the same
Answer the next question based on the following payoff matrix for two oligopolistic firms in which the numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. Firm X? High PriceLow PriceFirm YHigh priceA = $625A = $725??B = $625B = $475?Low priceA = $475A = $400??B = $725B = $400If both firms collude to maximize joint profits, the total profits for the two firms will be
A. $1,200,000. B. $1,500,000. C. $1,400,000. D. $1,250,000.
If a check written on one bank is deposited in another bank
A) new reserves are created for the banking system. B) the money supply decreases. C) the money supply remains unchanged. D) the money supply increases.
An IOU that promises to pay a certain amount at maturity, and also to pay periodic fixed amounts until that date, is called a(n)
A. stock. B. equity. C. bond. D. futures contract.