In labor markets, risk taking accounts for some income differences.
Answer the following statement true (T) or false (F)
True
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Interest rate parity occurs when
A) interest rates are equal across nations. B) interest rate differentials are always maintained across nations. C) interest rates no longer affect the exchange rate. D) prices are equal across nations when exchange rates are taken into account. E) the interest rate in one currency equals the interest rate in another currency when exchange rate changes are taken into account. The figure above shows the demand curve for dollars in the foreign exchange market.
A monopolistically competitive firm ________ in the long run
A) earns low but positive economic profits B) earns high economic profits C) earns zero economic profits D) incurs losses
Distinguish between fiscal imbalance and generational imbalance
What will be an ideal response?
Decreases in the demand curve for labor may arise from ____ in labor productivity or from ____ in the price of the good
a. increases; increases. b. increases; decreases. c. decreases; increases. d. decreases; decreases.