Refer to Figure 19-8. The equilibrium exchange rate is at A, $1.25/euro. Suppose the European Central Bank pegs its currency at $1.00/euro. At the pegged exchange rate,
A) there is a surplus of euros equal to 700 million. B) there is a shortage of euros equal to 500 million.
C) there is a shortage of euros equal to 200 million. D) there is a surplus of euros equal to 300 million.
B
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Most goods and service that we enjoy are bought and sold in the market. However, leisure is something that we value but we do not buy it explicitly
What is the price of leisure? Explain what would happen to the amount of leisure that we would enjoy if the wage rate went up. Make sure to use the substitution and income effect to explain your answer and postulate whether leisure is a normal or inferior good. Why is the ultimate net effect not determinable by appealing to logic alone?
Potential problems with incentive based compensation are
a. not evaluating the relevant performance measures b. rewarding outcomes that are not included in the performance evaluation c. not granting rewards for meeting performance measures d. all of the above
The poverty rate for female households with no spouse present is approximately
a. 10 percent. b. 20 percent. c. 30 percent. d. 40 percent.
Explain why holding period return, as an economic measure, does not have the same significance as current yield or yield to maturity.
What will be an ideal response?