Suppose a U.S. firm buys a one-year U.K. bond for 6,000 British pounds when 1 British pound is worth $1.50 on the foreign exchange market. What is the firm's approximate rate of return on the bond if the interest rate on the bond is 15 percent and the exchange rate is 1 British pound worth $1.93 at maturity?
a. 11 percent
b. 15 percent
c. 25 percent
d. 33 percent
e. 48 percent
e
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Which of the following situations lead firms to increase production?
A) real GDP = $16.0 trillion and aggregate planned expenditures = $15.0 trillion B) real GDP = $15.0 trillion and aggregate planned expenditures = $14.0 trillion C) real GDP = $12.0 trillion and aggregate planned expenditures = $12.0 trillion D) real GDP = $15.0 trillion and aggregate planned expenditures = $16.0 trillion E) Both answers A and C are correct.
Which of the following is the formula used for computing an accounting profit?
A) accounting profits = total revenue - implicit costs B) accounting profits = total revenue - (implicit + explicit costs) C) accounting profits = total costs - total revenue D) accounting profits = total revenue - explicit costs
The basic data source to track the number of unemployed comes from a calculation of applications for new unemployment benefits
a. True b. False Indicate whether the statement is true or false
Two goods are complements if an increase in the price of one good leads to an increase in demand for the other.
Answer the following statement true (T) or false (F)