According to the interest parity condition, if the domestic interest rate is 10 percent and the foreign interest rate is 12 percent, then the expected ________ of the foreign currency must be ________ percent
A) appreciation; 4
B) appreciation; 2
C) depreciation; 2
D) depreciation; 4
C
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The table above shows the demand and costs for a single-price monopolist. The firm can maximize its profit by setting its price at
A) $30 per unit. B) $35 per unit. C) $40 per unit. D) $45 per unit.
How does the decreasing use of DVD players affect the market for prerecorded DVDs?
A) The demand curve for prerecorded DVDs shifts to the left. B) The quantity of prerecorded DVDs demanded decreases. C) The quantity of prerecorded DVDs demanded increases. D) The demand curve for prerecorded DVDs shifts to the right.
Excess reserves that are voluntarily held by institutions are called:
a. Customary reserves. b. Bank equity. c. Normal reserves. d. Funny money. e. Federal funds.
If a 10 percent decrease in the price of a good leads to a 20 percent increase in the quantity demanded, then what is the price elasticity of demand?
A. 10 B. 2 C. 0.5 D. 20