Assume that the current one-year rate is 3% and the two-year rate is 5%. Given this information, the one-year rate expected one year from now is
A) 5%.
B) 6%.
C) 7%.
D) 9%.
E) 12%.
C
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What are net exports?
A. Exports minus imports B. Exports plus imports C. Imports minus exports D. That portion of consumption and investment goods sent to other countries
In the figure above, the equilibrium exchange rate is expressed as $1 U.S. equals
A) $2.00 Canadian. B) $1.50 Canadian. C) $0.50 Canadian. D) none of the above
Under NAFTA, environmental standards are
A) harmonized around Mexican rules. B) harmonized around U.S. rules. C) harmonized around Canadian rules. D) harmonized around a combination of the rules in all three countries. E) not harmonized.
Consider two goods X and Y available for consumption. Assume that the price of X changes while the price of Y remains fixed. For these two goods, the price-consumption curve illustrates the
A) relationship between the price of X and consumption of Y. B) utility-maximizing combinations of X and Y for each price of X. C) relationship between the price of Y and the consumption of X. D) utility-maximizing combinations of X and Y for each quantity of X.