Assume that the interest rate in a foreign country is 7% and that the foreign currency is expected to depreciate by 3% during the year. For each dollar that a U.S. resident invests in foreign bonds, he/she can expect to get back an approximate total of
A) $.93.
B) $.96.
C) $1.04.
D) $1.07.
E) $1.10.
C
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All of the following could be covered by patent protection except
A) a newly discovered Beethoven symphony. B) a new variety of hybrid rose bush. C) a hydrogen fuel cell engine. D) a laser hair-removal device.
If company X is successfully outsourcing its production of T-shirts to China, it is
a. Creating wealth by moving labor in China from lower value use to higher value use b. Should be stopped on economic grounds since it is destroying wealth c. Destroying wealth by acquiring cheaper labor from China d. Both A & C
If there is an increase in the price of oil, then
a. unemployment rises. If the central bank tries to counter this increase, inflation rises. b. unemployment rises. If the central bank tries to counter this increase, inflation falls. c. unemployment falls. If the central bank tries to counter this decrease, inflation falls. d. unemployment falls. If the central bank tries to counter this decrease, inflation rises.
An increase in the price level, other things equal, will shift the:
A. Consumption, investment, and net exports schedules of the aggregate expenditures model downward B. Consumption, investment, and net exports schedules of the aggregate expenditures model upward C. Consumption, and investment schedules of the aggregate expenditures model upward, but the net exports schedule downward D. Consumption, and net exports schedules of the aggregate expenditures model upward, but the investment schedule downward