Economists have proved that a substantial increase in income during a month does not affect consumption much in the short run unless it is perceived as a permanent increase
a. True
b. False
Indicate whether the statement is true or false
True
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There are several reasons why interest rate parity may not hold exactly and, therefore, we can earn arbitrage profits from this situation
Indicate whether the statement is true or false
Patent laws establish property rights for new goods
a. for 10 years b. for 20 years c. for 5 years d. until a better product comes along e. until the firm goes out of business
Other things the same, which curve in the market for foreign-currency exchange shifts and which direction does it shift if net capital outflow rises?
If expansionary fiscal policies in theUS lead to increased budget deficits what will happen to real interest rates in the US and the value of the dollar?
a. increase; increase b. increase; decrease c. no change; decrease d. decrease; increase e. decrease; decrease