A firm that buys foreign exchange in order to take advantage of higher foreign interest rates is
A) speculating.
B) demonstrating purchasing power parity.
C) engaging in interest rate arbitrage.
D) responding to fluctuations in the business cycle.
C
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The antitrust doctrine that the existence of a monopoly alone is not illegal unless the monopoly engages in illegal business practices is known as
One In the News article in the text titled "The Real March Madness: Ticket Prices " described how professional scalpers use the Internet to sell hard-to-get tickets to concerts and sporting events. When scalpers resell tickets at prices closer to equilibrium,
A. A market shortage is made larger, and the original sellers reap a profit. B. A market surplus is made smaller, and the scalpers reap a profit. C. A market shortage is made larger, and the scalpers reap a profit. D. A market shortage is made smaller, and the scalpers reap a profit.
The term autarky refers to
a. equilibrium after trade begins between two countries b. the gains received from trade c. self-sufficiency d. political isolationism e. the recognition that mutually beneficial trade is not possible between two countries
Which of the following is in charge of the buying and selling of government securities by the Fed?
a. The president. b. The Federal Open Market Committee. c. The Congress. d. None of these.