Suppose that the spot exchange rate for a foreign currency is equal to $120, while the interest rate in dollars is 2% and the interest rate in the foreign currency is 3%. What is the approximate forward rate that is consistent with this situation?
A) $115.56
B) $124.44
C) $118.77
D) None of the above.
A
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If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will
A) eat the slice of pizza. B) not eat the slice of pizza. C) be unable to choose between eating or not eating. D) eat half the slice. E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.
Refer to Table 5.3. In order to weigh which of the job choices is riskiest, an individual should look at
A) the deviation, which is the difference between the probabilities of the two outcomes. B) the deviation, which is the difference between the dollar amounts of the two outcomes. C) the average deviation, which is found by averaging the dollar amounts of the two outcomes. D) the standard deviation, which is the square root of the average squared deviation. E) the standard deviation, which is the squared average square root of the deviation.
A demand schedule refers to the combinations of price and quantity that represent the:
A. Concerns of regulators. B. Preferences of businesses. C. Desires of consumers. D. Demands of producers.
For a cartel behaving like a pure monopoly, equating marginal revenue to marginal cost maximizes profit over-and-above the perfectly competitive profit.
Answer the following statement true (T) or false (F)