The total rate of return on an international asset is the:
a. spot rate plus the forward rate.
b. rate of return on the asset plus or minus the expected capital gain or loss on currency changes.
c. rate of return on the asset minus commissions.
d. rate of return plus inflation minus taxes.
Ans: b. rate of return on the asset plus or minus the expected capital gain or loss on currency changes.
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Refer to Scenario 6.1. The dominant strategy is for Tasha to work ________ and for Gloria to work ________
A) extremely hard; extremely hard B) extremely hard; somewhat hard C) somewhat hard; extremely hard D) somewhat hard; somewhat hard
An increase in government expenditure on goods and services ________ aggregate demand, shifting the aggregate demand curve ________ and potentially bringing the ________ phase of the business cycle
A) decreases; rightward; expansion B) increases; rightward; recession C) decreases; leftward; recession D) increases; rightward; expansion E) increases; leftward; recession
Which of the following addresses agency costs?
a. advertising for employee positions in as many outlets as possible b. hiring only from job fairs c. spot checks of the quality of employee work d. reducing the number of holidays
Each country in NAFTA sets its own tariffs to the rest of the world.
a. true b. false