In the case where interest rates are higher in Canada, which of the following is an example of a "carry trade"
a. Increase borrowing in the US, convert to Canadian dollars and invest in Canada
b. Increase borrowing in the US and invest in the US
c. Increase borrowing in Canada, convert to dollars and invest in the US
d. Increase borrowing in Canada and invest in Canada
a
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For a firm in monopolistic competition, the marginal cost curve intersects the average total cost curve
A) at the minimum average total cost. B) to the left of the minimum average total cost. C) to the right of the minimum average total cost. D) at no point.
Suppose Arf n' Barf restaurant has a monopoly on restaurant food in a certain small town. Their rent, which is one of several fixed costs they pay whether they sell food or not, has gone up. In the short run, the Arf n' Barf should
a. pay the higher rent and increase menu prices b. pay the higher rent and leave menu prices unchanged c. pay the higher rent and lower prices d. go out of business e. shut down
In a monopoly, which of the following is not true?
a) Products are differentiated. b) There is freedom of entry and exit into the industry in the long run. c) The firm is a price maker. d) There is one main seller.
Which of the following is not considered part of M2?
A. small time deposits of less than $100,000 B. money market mutual fund shares C. savings deposits D. large time deposits of more than $100,000