Covered interest arbitrage involves both
A) the purchase of a foreign asset and a forward contract in the market for foreign exchange.
B) the purchase of a domestic asset and a spot contract in the market for foreign exchange.
C) the sale of a foreign asset and the purchase of a forward contract in the market for foreign exchange.
D) the sale of domestic stocks and the purchase of foreign bonds.
E) None of the above.
A
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Exhibit 30-1
?
A. social failure. B. optimal failure. C. market failure. D. socially optimal output. E. none of the above
Which of the following program(s) examples is (are) in-kind assistance to fight poverty in the United States?
a. Medicaid b. Negative income tax c. Supplemental security income (SSI) d. Aid to Families with Dependent Children (AFDC) e. Welfare checks
The Coase Theorem states that:
a. bargaining between producers and consumers leads to an efficient outcome when costs are low. b. bargaining between producers and consumers leads to an efficient outcome when costs are high. c. property rights should be assigned to the producers causing the externality d. property rights should be divided between the consumers affected by the externality.
Refer to the information provided in Figure 13.8 below to answer the question that follows. 
Figure 13.8 Refer to Figure 13.8. The only firm producing electricity has the long-run average total cost curve shown. The total amount of demand for kilowatts is 100,000 per hour. It makes economic sense for this firm to be the only producer of electricity because this firm
A. must have control over a scarce factor of production. B. must have a patent on the production process necessary to produce electricity. C. must be realizing economies of scale in producing electricity. D. must have a government franchise to produce electricity.