If the nominal interest rate parity condition is not met,
A) imports will exceed exports.
B) the return from holding domestic assets must exceed the expected return from holding foreign assets.
C) the return from holding domestic assets must be less than the expected return from holding foreign assets.
D) the return from holding domestic assets must be greater or less than the expected return from holding foreign assets.
D
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Refer to the scenario above. Real GDP of the country has grown by ________
A) 0.2% B) 10% C) 5% D) 20%
The Fed conducts an open market operation and increases a bank's excess reserves by $2,000
Explain the first five rounds of the money creation process if the desired reserve ratio is 25 percent and if people keep no currency outside of the banking system.
Which of the following will take place in the foreign exchange market if there is an increase in the demand for products made in the United States?
A) The supply of dollars will decrease. B) The demand for dollars will decrease. C) The demand for dollars will increase. D) The dollar will decrease in value.
A good is said to be overproduced in an economy if
A. the social marginal cost exceeds the social marginal benefit. B. the production of the good generates a positive externality. C. the marginal cost of producing the good is less than its price. D. the marginal benefit derived from the consumption of the good is more than the price.