Offshoring required which types of advances?
What will be an ideal response?
Advances in communications technology, such as fax machines, video conferencing, the internet, and in general, lower prices for long distance communication
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Compound interest is:
A. the payment of interest on the original deposit. B. the payment of interest on both the original deposit and all accumulated interest. C. the interest rate adjusted for the rate of inflation. D. the real rate of interest compounded by the rate of inflation.
When a country imposes capital controls, it is controlling the
A) amount of money flowing in or out of the country. B) amount of reserves that banks must hold. C) portion of bank deposits that must be held at its central bank. D) portion of bank deposits that must be used for loans to the government.
The very low inflation that the U.S. experienced in 2009 and 2010
a. appears to have reduced expected inflation, and the short-run Phillips curve shifted downward as a result. b. appears to have reduced expected inflation, and the short-run Phillips curve shifted upward as a result. c. does not appear to have reduced expected inflation, and the short-run Phillips curve remained relatively stable as a result. d. does not appear to have reduced expected inflation, but the short-run Phillips curve shifted dramatically nevertheless.
Fly-By-Night Inc. issues $100 face value, zero-coupon, one-year bonds. The current return on one-year, zero-coupon U.S. government bonds is 3.5%. If the Fly-By-Night bonds are selling for $92.00, what is the risk premium for these bonds?
A. 5.2% B. 8.0% C. 8.7% D. 1.5%