If real interest rates are equal in two countries, then the nominal interest differential on their currencies will equal
A) the expected inflation differential.
B) the risk premium.
C) the forward premium or discount.
D) Both A and C.
D
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In a common-value auction
a. No bidder knows what the exact value of the item being auctioned b. Each bidder has only an estimate of the value of the item c. The value is the same for each bidder d. All of the above
Which of the following is not an example of a public good that the government has made excludable?
A. Toll roads. B. City buses. C. State colleges. D. Fire Protection.
An example of a perfectly competitive market would be the market for
a. electricity. b. soybeans. c. coffee shops. d. restaurants.
What events most likely explain the following Wall Street Journal headline, "Cities Couldn't Give Away Their Trash; Now They Get Top Dollar"?
A. Supply initially exceeded demand, but a subsequent increase in the quantity of trash demanded not only eliminated the surplus, but led to a rise in the price of trash. B. Quantity supplied initially exceeded quantity demanded, but a subsequent increase in the supply of trash not only eliminated the surplus, but led to a rise in the price of trash. C. Quantity supplied initially exceeded quantity demanded, but a subsequent increase in the demand for trash not only eliminated the surplus, but led to a rise in the price of trash. D. Supply initially exceeded demand, but a subsequent increase in the quantity of trash supplied not only eliminated the surplus, but led to a rise in the price of trash.