The expected rate of currency depreciation is equal to the proportional difference between the forward rate and the spot rate. This is known as the:
a. forward depreciation.
b. backward depreciation.
c. forward premium.
d. backward premium.
Ans: c. forward premium.
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A firm's revenue minus its factor payments equals
a. zero. b. the profits or losses earned by the firm. c. the quasi-rents earned by the factors of production. d. the firm's total revenue.
The marginal social benefit curve from a public good is found by horizontally summing the marginal benefit curves of all individuals
Indicate whether the statement is true or false
The consumption function is the relationship between consumption and:
A. total spending. B. disposable income. C. investment. D. planned aggregate expenditure.
A tax on buyers will ________ the price paid by the consumer and ________ the price received by the seller.
A. increase, decrease B. increase, increase C. decrease, decrease D. decrease, increase