Interest rate parity holds well in the Eurocurrency market
Indicate whether the statement is true or false
TRUE
Explanation: There is no political risk or government controls. The only difference is "currency of denomination."
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Which of the following factors will NOT increase economic development?
A) establishing a system of property rights B) increasing the amount of protectionism C) increasing the amount of education in the population D) creative destruction where old jobs, companies and industries are destroyed
Income disparities alone prove the existence of racial discrimination in the labor market
Indicate whether the statement is true or false
The process of dividing a nominal quantity by a price index in order to express the quantity in real terms is called:
A. negative inflation. B. indexing. C. depressing. D. deflating.
Consider the case of a teacher who tells students that those who miss more than three classes for any reason will automatically receive a lower grade.
A. Students who miss more than three classes are irrational. B. The teacher is assuming that students are irrational, and she must force them to attend class. C. This is an example of a positive incentive for students to attend class. D. This is an example of a negative incentive for students to attend class.