Ignoring risk differences, if we observe American investors purchasing foreign bonds when the U.S. interest rate is above the foreign interest rate, we could assume that:
A. these investors expect the dollar to appreciate over the life of their investment.
B. American investors lack good information.
C. these investors expect that U.S. inflation will slow.
D. these investors expect the dollar to depreciate over the life of their investment.
Answer: D
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A) market demand B) scheduled demand C) quantity demanded D) law of demand
Answer the following statements true (T) or false (F)
1) The Sherman Act was passed in 1914. 2) The Clayton Act was the second major piece of antitrust legislation. 3) The Federal Trade Commission Act and the Sherman Act were passed in the same year. 4) The Antitrust Division of the Department of Justice enforces antitrust laws through both civil and criminal suits. 5) Actions that violate the Sherman Act can result in penalties that total substantially more than $100 million.
The World Trade Organization (WTO)
a. members are required to eliminate tariffs and customs duties b. supervises trade in merchandise and in services c. supervises merchandise trade only d. members are required to eliminate ad valorem tariffs but not specific tariffs e. includes all nations with populations greater than 10 million, with the exception of North Korea and Cuba
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