Under PPP (and by the Fisher Effect), all else equal
A) a rise in a country's expected inflation rate will eventually cause a more-than proportional rise in the interest rate that deposits of its currency offer in order to accommodate for the higher inflation.
B) a fall in a country's expected inflation rate will eventually cause an equal rise in the interest rate that deposits of its currency offer.
C) a rise in a country's expected inflation rate will eventually cause an equal rise in the interest rate that deposits of its currency offer.
D) a rise in a country's expected inflation rate will eventually cause a less than proportional rise in the interest rate that deposits of its currency offer to accommodate the rise in expected inflation.
E) a fall in a country's expected inflation rate will eventually cause an inversely proportional rise in the interest rate that deposits of its currency offer to accommodate the rise in expected inflation.
C
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As a plaintiff, all of the following will help you negotiate a larger settlement except which one?
A) increasing the defendant's estimate of damages B) decreasing the defendant's estimate of damages C) increasing the defendant's cost of litigation D) raising the defendant's subjective probability that you will win
In which of the following cases does the Robinson-Patman act not apply?
a. There are no cost differences to serving different groups b. Discounts are never offered to meet competition c. The industry does not engage in promotional allowances d. All of the above
Felix deposited $500 into an account two years ago. The first year he earned 3 percent interest and the second year he earned 5 percent interest. How much money does Felix have in his account now?
a. $540.75 b. $540.80 c. $540.85 d. None of the above are correct to the nearest cent.
If the market price is below the break-even point, in the long run we should expect
A. firms to enter the industry, market supply to rise, and product price to fall. B. firms to leave the industry, market supply to rise, and product price to fall. C. firms to leave the industry, market supply to fall, and product price to rise. D. no change in the number of firms in this industry.