Assume a one year U.S. bond pays 4.0% interest and a similar U.K. bond pays 5.2% interest. Which of the following changes will establish interest rate parity?
a. The British pound would be expected to appreciate by 1.2% against the U.S. dollar.
b. The U.S. dollar would be expected to depreciate by 1.2% against the British pound.
c. The British pound would be expected to depreciate by 1.2% against the U.S. dollar.
d. The British pound would be expected to appreciate by 9.2% against the U.S. dollar.
e. The U.S. dollar would be expected to appreciate by 9.2% against the British pound.
c
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Some sales managers are talking sho
A) "Since our competitors raised their prices our sales have doubled." B) "It has been an unusually mild winter; our sales of wool scarves are down from last year." C) "We decided to cut our prices, and the increase in our sales has been remarkable." D) none of the above
Consumption expenditure is 15,000, government purchases are 5,000, planned investment spending is 4,000 and net exports are 1,500. If total output is 25,000, then unplanned inventory investment is ________
A) negative 500 B) 2,500 C) 3,500 D) 4,000 E) negative 450
Which of the following will NOT cause a rightward shift in the supply curve?
A. a reduction in the expected future price B. an improvement in technology C. a reduction in resource costs D. none of these
When an economy's production capacity is expanding:
What will be an ideal response?