Deviations from purchasing power parity will be increasingly higher as international trade tariffs become more restrictive. This is mainly because:
a. arbitrage activities become less profitable.
b. governments discourage purchasing power parity.
c. the interest rate parity fails to hold.
d. goods become more differentiated across countries.
e. individuals develop hatred toward closed economies.
a
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Regulation
A) always increases consumer surplus. B) passes the cost-benefit test. C) solves market failures of all size. D) None of the above.
What does the negative slope of the production possibilities frontier imply?
A) Diminishing marginal utility. B) The only way to increase one person's utility is to decrease the other's. C) Diminishing marginal rates of technical substitution. D) The only way to increase output of one good is to decrease output of another.
All of the following are major sources for financing public education EXCEPT
A) income taxes. B) sales taxes. C) property taxes. D) government fees.
What are three ways that lenders increase the rate of interest paid relative to what it appears to be?
What will be an ideal response?