When a tariff is removed from an imported product, which of the following will occur?
A. The demand curve for the imported product will shift to the right.
B. The level of imports will fall.
C. The supply curve for the imported product will shift to the left.
D. The price paid by consumers will fall.
Answer: D
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Suppose an individual firm is comparing two investments, a one year bond from a U.S. firm paying 4% or a one year bond from a German firm which is paying 6%. The current dollars-per-euro rate is 0.75, and the expected rate in one year is 0.78
If the expected rate is correct, which investment will yields a covered interest arbitrage opportunity? A) The U.S. Bond B) The German Bond C) They will have the same return D) This cannot be determined from the information given.
The efficiency
A) gain from a fixed exchange rate with the euro is smaller when trade between say, Norway and the euro zone, is extensive than when it is small. B) gain from a fixed exchange rate with euro is greater when trade between say, Norway and the euro zone, is extensive than when it is small. C) loss from a fixed exchange rate with the euro is smaller when trade between say, Norway and the euro zone, is extensive than when it is small. D) gain from a fixed exchange rate with euro is the same as when trade between say, Norway and the euro zone, is extensive than when it is small. E) gain from a fixed exchange rate with euro is the same as when trade between say, Norway and the euro zone, is small than when it is small.
The reserve ratio represents the proportion of deposits that a bank wishes to hold with itself
a. True b. False Indicate whether the statement is true or false
Consistency of feasible generalized least square estimators requires the error term to be correlated with lags of the explanatory variable.
Answer the following statement true (T) or false (F)