If the bonds of two different countries are identical, their expected returns will:
A. always be equal.
B. be equal only if the inflation rate is the same in each country.
C. be equal only if the exchange rate between the two countries is fixed.
D. be equal if capital flows freely internationally.
Answer: D
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The key feature of monopolistic competition that distinguishes it from perfect competition is
A) many sellers. B) barriers to entry. C) interdependency. D) product differentiation.
Today, in the United States, imports are about
A) 16 percent of GDP. B) 32 percent of GDP. C) 8 percent of GDP. D) 4 percent of GDP.
Refer to the below graph. At the profit-maximizing level of short-run output, this monopolistic ally competitive firm will be making a profit of:
The graph depicts a monopolistic ally competitive firm.
A. $275
B. $350
C. $500
D. $525
Refer to the diagram. Which of the following statements is correct?
A. The price index is greater than 100 for every year shown on the graph.
B. Nominal GDP must be deflated in each year prior to 2000 to determine real GDP.
C. Real GDP has grown in this economy, but nominal GDP has not.
D. Nominal GDP must be deflated in each year since 2000 to determine real GDP.