Assume that the uncovered interest parity condition holds. Also assume that the U.S. interest rate is greater than the U.K. interest rate. Given this information, we know that investors expect
A) the pound to depreciate.
B) the pound to appreciate.
C) the dollar-pound exchange rate to remain fixed.
D) the U.S. interest rate to fall.
E) none of the above
B
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How does money make the circular flow model more efficient
A. Neither the product nor resource market can exist without money. B. Money gives firms an advantage over households, since they have more money. C. Money makes the product market more important than the resource market D. Having a common medium of exchange, like money, eliminates the need to barter.
In the Full Employment and Balanced Growth Act of 1978, Congress set a target rate of unemployment. The nation achieves this target rate
a. in most years b. at least once a year c. only rarely d. in election years e. at least once every five years
A firm's _______ shows the amount of output a firm can produce from given amounts of inputs using efficient production methods.
A. production possibilities set B. efficient production frontier C. production function D. production possibilities curve
A pure monopolist's short-run profit-maximizing or loss-minimizing position is such that price:
A. equals marginal revenue. B. will vertically intersect demand where MR = MC. C. will always equal ATC. D. always exceeds ATC.