Perfect asset substitutability is the assumption that
A) the foreign exchange market is in equilibrium only when expected returns on domestic assets are greater than returns on foreign currency bonds.
B) the foreign exchange market is in equilibrium only when expected returns on foreign currency bonds are greater than returns on domestic assets.
C) the foreign exchange market is in equilibrium only when expected returns on all assets are negative.
D) the foreign exchange market is in equilibrium only when expected returns on domestic assets are equal to returns on foreign currency bonds.
E) the foreign exchange market is in equilibrium only when domestic assets are risk-free.
D
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A firm's revenue minus its factor payments equals
a. zero. b. the profits or losses earned by the firm. c. the quasi-rents earned by the factors of production. d. the firm's total revenue.
Suppose the consumer price index (CPI) for Year X is 130 . This means the average price of goods and services is:
a. currently $130. b. 130 percent more in Year X than in the base year. c. 130 percent more in the base year than in Year X. d. priced at 30 percent more in Year X than in the base year.
You will still be able to listen to NPR (National Public Radio) whether or not you contribute to their fund-raising campaign, so you decide not to contribute. This is an example of the
A. drop-in-the-bucket problem. B. private good problem. C. free-rider problem. D. rival in consumption problem.
Compared to a purely competitive firm in long-run equilibrium, the monopolistic competitor has a:
A. Lower price and lower output B. Higher price and lower output C. Higher price and higher output D. Price and output that may be higher or lower