A consol paying $20 annually when the interest rate is 5 percent has a price of
A) $100.
B) $200.
C) $400.
D) $800.
C
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Multinational companies can easily apply identical production methods in different countries and obtain the same results
Indicate whether the statement is true or false
The demand for dollars will increase in foreign-exchange markets if:
A. U.S. interest rates are high relative to those overseas. B. the U.S. is perceived to be a riskier place for investment relative to other nations. C. foreigners want to buy less U.S. goods. D. US consumers decide to buy more foreign goods than before.
Variability in prices for grains tends to be _____ (less than, greater than) variability in price for beef and hogs.
a. Less than b. Greater than
How would the real exchange rate need to change to get aggregate expenditure to increase?
A. Remain constant B. Increase C. Exchanges rates don't generally affect aggregate expenditure. D. Decrease