An increase in interest rates might ________ saving because more can be earned in interest income
A) encourage
B) discourage
C) disallow
D) invalidate
A
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Suppose the nominal interest rate is 5 percent, the tax rate on interest income is 30 percent, and the after-tax real interest rate is 0.8 percent. Then the inflation rate is 2.7 percent
a. True b. False Indicate whether the statement is true or false
A pound of steak costs $10 in the U.S. and 56.25 riyals (the currency of Saudi Arabia) in Saudi Arabia. If the real exchange rate is 2/3, what is the nominal exchange rate? Show your work
According to UIP, when domestic and foreign interest rates are equal, the exchange rare of the home currency is expected to
a) fall b) remain contact c) rise d) not enough information is provided
________ goods are rival in consumption and their benefits are excludable.
A. Social B. All C. Private D. Public