What factors can change expectations about the exchange rate?

A) interest rate parity
B) purchasing power parity
C) real GDP parity
D) Both answers A and B are correct.


D

Economics

You might also like to view...

A positive supply shock causes ________ to ________

A) aggregate demand; increase B) aggregate demand; decrease C) short-run aggregate supply; decrease D) short-run aggregate supply; increase

Economics

Industry demand is given by: QD = 1000 – P

All firms in the industry have identical and constant marginal and average costs of $50/unit. a. If the industry is perfectly competitive, what will industry output be? What will be the equilibrium price? What profit will each firm earn? b. Now suppose that there are five firms in the industry, and that they collude to set price. What price will they set? What will be the output of each firm? What will be the profit of each firm?

Economics

If a firm is hiring in a perfectly competitive labor market, the firm's marginal labor cost (or marginal resource cost) curve slopes downward

a. True b. False

Economics

A firm employs 15,000 workers and has annual revenues of over $750 million. Knowing this, we also know that the firm is in what type of market structure?

a. monopoly b. oligopoly c. monopolistic competition d. perfect competition e. impossible to tell what market structure the firm is in

Economics