If UIP holds and the home currency is expected to appreciate by 4%, then the home interest rate is:
a. 6%
b. 5%
c. 4%
d. Not enough information is provided to answer the question
Ans: d. Not enough information is provided to answer the question
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On which of the following does the neoclassical counter-revolution school most blame underdevelopment?
a. misguided government policies b. relatively rigid cultural traditions c. the legacy of colonialism d. unfair trade practices on the part of developed countries
The two most important American business cycle events of the twentieth century were
A) the Great Depression and stagflation. B) World War II and the Great Depression. C) the productivity slowdown and the Great Depression. D) government budget deficits and World War II.
Martin, a U.S. citizen, travels to Mexico and buys a newly manufactured motorcycle made there. His purchase is included in
a. both Mexican GDP and U.S. GDP. b. Mexican GDP, but it is not included in U.S. GDP. c. U.S. GDP, but it is not included in Mexican GDP. d. neither Mexican GDP nor U.S. GDP.
Refer to Figure 11-5. Curve G approaches curve F because
A) marginal cost is above average variable costs. B) fixed cost falls as capacity rises. C) average fixed cost falls as output rises. D) total cost falls as more and more is produced.