The spot exchange rate is equal to the forward exchange rate:
a. Only when the exchange rate is equal to 1.00 because then the inverse is also 1.00.
b. When the central bank chooses to equalize both rates.
c. When the interest rates of the two countries are not expected to change.
d. When the difference between the interest rates of the two countries are expected to remain constant.
e. When the nominal interest rates of the two countries are equal.
.E
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Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as
A) traveling. B) structural. C) frictional. D) distance. E) cyclical.
Building a good reputation in the marketplace:
A. is easy to fake. B. can take a long time to establish. C. is not a significant value to a seller. D. All of these statements are true.
As the U.S. economy relies more and more heavily on the production of services rather than goods,
A. International trade will become more difficult. B. Nearly all future job growth will be in service-producing industries. C. GDP will decrease since there will be less real production. D. Mass unemployment will result.
Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental economic question?
A. Which output will be produced? B. How is the output to be produced? C. How can the system accommodate change? D. Who is to receive the output?