It's difficult to measure asset inflation because asset prices can increase when assets become more productive.
Answer the following statement true (T) or false (F)
True
One reason asset prices rise is that their productivity has risen. This is not inflation.
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Using the table above, if the current market value of the dollar is 110 francs
A) investor A expects dollar appreciation, but B and C expect depreciation. B) investor C expects dollar depreciation, but A and B expect appreciation. C) all three investors expect the dollar to appreciate. D) all three investors expect the dollar to depreciate.
Which of the following is considered a negative supply shock?
A) an unexpected decrease in the refining capacity for oil B) an improvement in technology C) increasing immigration in the economy causes the labor supply to rise D) an increase in unemployment
An investor who is considering hedging by selling Treasury futures can also hedge by:
A) buying Treasury put options B) selling Treasury put options C) buying Treasury call options D) buying European Treasury options
Typically, coffee and tea are
a. complements b. substitutes c. inferior goods d. unrelated goods e. nonmarket goods