The effective return from a foreign investment is
A) the domestic interest rate plus the forward premium (discount).
B) the foreign interest rate plus the forward premium (discount).
C) the nominal interest rate minus inflation.
D) the real interest rate.
B
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The figure above shows a production possibilities frontier. In the figure, which of the following combinations of the two goods cannot be produced with the current resources and technology?
A) 5 million cell phones and no DVDs B) 1 million cell phones and 14 million DVDs C) 4 million cell phones and 4 million DVDs D) 3 million cell phones and 5 million DVDs E) 2 million cell phones and 13 million DVDs
Which of the following accurately measures the welfare or happiness of society?
A) Nominal GDP B) Real GDP C) Both Nominal GDP and Real GDP D) None of the above.
How would a widespread adoption of credit cards affect the demand for money and the demand for money curve?
What will be an ideal response?
A person with diminishing marginal utility of wealth is risk averse
a. True b. False Indicate whether the statement is true or false