When domestic and foreign currency bonds are imperfect substitutes, the domestic interest rate (R) can be written as
A) R = R - (Ee - E)/E + ?.
B) R = R - (Ee - E)/E.
C) R = R + (Ee - E)/E + ?.
D) R = R - (Ee + E)/E + ?.
E) R = R - (Ee - E)?.
C
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The figure above shows the labor market in a small town. If the government imposes ________ that firms must at least pay, the effect will be ________ because ________
A) a minimum wage of $10; an increase in unemployment; a surplus of labor is created B) a minimum wage of $10; no change in unemployment; it will not affect how firms demand labor C) a minimum wage of $10; a decrease in unemployment; a shortage of labor is created D) an efficiency wage of $10; an increase in unemployment; a shortage of labor is created E) an efficiency wage of $10; a decrease in unemployment; a surplus of labor is created
Paying a wage to an employee that is lower than the employee's marginal revenue product is sometimes referred to as
A) illegal in most states. B) monopolistic exploitation. C) monopsonistic exploitation. D) total exploitation.
In a market economy, buyers and sellers communicate their intentions to one another through:
a. government planners. b. negotiations overseen by government agencies. c. elected officials. d. prices.
A point lying inside the production possibilities curve [PPC] is not an attainable combination
a. True b. False Indicate whether the statement is true or false