In order to infer expected future exchange rates, we must have a forward exchange market in a currency
Indicate whether the statement is true or false
FALSE
Explanation: The interest differential between the interest rates on that currency and other currencies would allow us to infer expected future exchange rates, i.e., iD - iF = F - S/S.
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Use the following graph to answer the question below.
Using the regular percentage change formula, what is the price elasticity of supply when moving from point A to point B?
A. 2 B. 1 C. 3 D. 1/3
Which of the following is not a reason for firms to merge?
a. to exercise greater market control b. to diversify asset holdings c. to increase control over suppliers d. to lower the Herfindahl-Hirschman Index e. to increase market share
Starting from an initial long-run equilibrium, an unanticipated shift to a more expansionary monetary policy would tend to increase
a. prices and unemployment in the long run. b. real output in the short run but not in the long run. c. real output in the long run but not in the short run. d. real output in both the long run and the short run.
According to the above table, at a price of $16 per earbud, there is
A. a shortage of 1500 earbuds. B. a shortage of 3000 earbuds. C. an equilibrium. D. a surplus of 3000 earbuds.