According to interest rate parity, if the interest rate is 1 percent in the European Union and the euro is expected to appreciate 3 percent, the comparable interest rate in the United States will be

A) 4 percent.
B) 3 percent.
C) 2 percent.
D) 1 percent.


A

Economics

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Transfer payments refer to payments from the government to ________

A) other government agencies B) distribute state taxes collected by the government to individual states C) reimburse property taxes paid by states for government property leases D) certain individuals or groups

Economics

The tariff imposed to punish a foreign discriminating monopolist is called:

a. antidumping duty. b. a subsidy. c. punitive damages. d. a fine.

Economics

Which of these equations indicates net exports?

a. net exports divided by net imports b. Exports plus imports c. Imports minus exports d. exports minus imports

Economics

Which choice below illustrates the tradeoff faced by surfboard manufacturers after Clark foam shut down in 2005, eliminating 80% of the worlds foam blanks used to shape surfboards? The firms decide to

A) substitute foam blanks for balsa wood blanks as used in the 1940s. B) advertise their new surfboard wax. C) offer surf classes. D) B and C

Economics