The interest parity condition requires that:
A) all countries have the same interest rate.
B) there is a unique exchange rate for every output level.
C) purchasing power parity hold.
D) interest rates are fixed in the short run.
E) the money supply is held constant.
B
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Sovereign debt refers to
A) debt owned by the government. B) bonds issued by the government. C) debt owed to the government. D) debt only issued by nations with kings or queens.
Vertical integration has no effect on the internal organization of a firm; it only affects the outside markets
a. True b. False
Suppose there is a decrease in aggregate demand. If the Fed wants to stabilize output it could
a. buy bonds. These purchases also move the price level closer to its original level. b. buy bonds. However these purchases move the price level farther from its original level. c. sell bonds. These sales also move the price level closer to its original level. d. sell bonds. However these sales move the price level farther from its original level.
Refer to the information provided in Table 31.2 below to answer the question(s) that follow.Table 31.2PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 50 60 2153 50 70 2254 50 80 230Refer to Table 31.2. When moving from Period 1 to Period 4, labor productivity
A. increases. B. decreases. C. does not change. D. first increases, then decreases.