If the future rate equals the spot rate, then in equilibrium:
a. the exchange rate must depreciate.
b. interest rates should be different.
c. the exchange rate will appreciate.
d. None of these will occur.
Ans: d. None of these will occur.
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The amount of loans that a bank can create is limited by
A) a law enacted by Congress. B) the bank's excess reserves. C) a directive from the Federal Reserve System, which takes into account the bank's financial stability. D) the real interest rate. E) the bank's government securities.
In the above table, if the marginal revenue product is $22, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?
A) 5; $18 B) 3; $14 C) 4; $22 D) 4; $16
Antitrust policy is designed to
a. improve health and safety in products and in working conditions b. regulate the firms in industries where "cut-throat" competition is potentially damaging c. create monopolies by forcing competitive firms to merge d. control price and output in industries where monopoly is desirable e. promote competition and reduce anticompetitive behavior
What is the free-rider problem, and how is it related to public goods?
What will be an ideal response?