Assume that the U.S. interest rate is 5%, the European interest rate is 2%, and the future expected exchange rate in one year is $1.224. If the spot rate is $1.16, then the expected dollar return on euro deposits is:
a. 7.52%
b. 5%
c. 3%
d. 2%
Ans: a. 7.52%
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Which of the following is true in regards to Okun's law?
A) employment does not increase commensurately with output rises because firms tend to hoard labor B) when demand increases, firms tend to work their employees harder and longer C) it is Okun's prediction of the negative relationship between the output and unemployment gaps that allows the modern Phillips curve to be translated into the AS curve D) all of the above E) none of the above
The aggregate supply curve will shift to the left if
A. energy prices fall. B. technology and productivity increase in the economy. C. the capital stock of the economy increases. D. the money wage rate increases.
Some adults who were not working are included in the Bureau of Labor Statistics' "employed" category
a. True b. False Indicate whether the statement is true or false
Using a PPC can help to increase a company's
a. efficiency b. underutilization c. losses d. employee theft