If the interest rate of a foreign country is less than that of the domestic country, then the foreign country should have a positive forward premium on its currency.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Autonomous expenditure is the component of
A) induced expenditure that changes when in real GDP changes. B) aggregate planned expenditure that changes only when government expenditure on goods and services change. C) aggregate expenditure that does not change when real GDP changes. D) aggregate expenditure that does not change when the interest rate changes. E) aggregate expenditure that changes when real GDP changes.
A bank has checkable deposits of $1,000,000, loans of $600,000, and government securities of $400,000. If the required reserve ratio is 5 percent, the amount of required reserves is
A) $100,000. B) $30,000. C) $50,000. D) $80,000. E) $20,000.
Which of the following is likely to lead to a left shift in the supply curve for labor to a firm?
A) The introduction of labor-saving technology B) The establishment of a new firm nearby that offers higher wages C) An increase in the opportunity cost of leisure D) The introduction of labor-complementary technology
Inflation targeting makes more sense than unemployment targeting, because ________
A) monetary policies affect inflation, not unemployment B) expected unemployment is not a key determinant of the unemployment rate C) a commitment to avoid high inflation is inherently more credible than a commitment to avoid high unemployment D) most voters and most elected officials are more concerned about inflation