The interest parity condition indicates that the domestic interest rate must be equal to
A) the foreign interest rate.
B) the expected rate of depreciation of the domestic currency.
C) the expected rate of appreciation of the domestic currency.
D) the foreign interest rate minus the expected rate of appreciation of the foreign currency.
E) none of the above
E
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Refer to Table 7.1. As labor inputs increase from 5 to 6, output
A) increases by 98 units. B) increases by 16 units. C) increases by 12 units. D) increases at a negative rate.
"Antebellum transportation improvements encouraged the South to specialize in cotton, while depending on the West for food and the Northeast for manufactured goods.". This statement
a. describes Rostow's stages of growth model. b. describes North's interregional growth hypothesis. c. describes Thomas Jefferson's vision of the US economy. d. is supported by most contemporary economic historians.
Suppose Evan and Robert are each filling out a separate survey about parking on campus. On Evan's survey, the first question asks about whether he thinks the fine for parking illegally on campus should be $50, and on Robert's survey the first question asks about whether he thinks the fine should be $100. For both Evan and Robert, the second question asks how much each thinks the fine currently is. If Evan and Robert know nothing about the parking fines on campus, but each uses anchoring and adjustment to form his assessment, then, all else equal, you would expect:
A. Robert's estimate of the current fine to be higher than Evan's. B. Evan's estimate of the current fine to be higher than Robert's. C. their estimates to be identical. D. both of them to guess a number between $50 and $100.
If oligopolists start cutting prices to capture a larger market share, the result will be a
A. Movement up the market demand curve. B. Leftward shift of the market demand curve. C. Rightward shift of the market demand curve. D. Movement down the market demand curve.