?The nominal interest rate is

A. ?endogenous in the ATM model, while it is exogenous in the liquidity-preference model.
B. ?exogenous in the ATM model, while it is endogenous in the liquidity-preference model.
C. ?endogenous in both the liquidity-preference and ATM model.
D. ?exogenous in both the liquidity-preference and ATM model.


Answer: B

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Neither the net present value method nor the internal rate of return method can be used as a screening tool in capital budgeting decisions.

Answer the following statement true (T) or false (F)

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In the liquidity-preference model, the slope of the money supply curve implies that

A. money demand varies directly with the nominal interest rate. B. money supply varies directly with the nominal interest rate. C. nominal interest rate has no effect on the money demand. D. nominal interest rate has no effect on the money supply.

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Proponents of this approach to using culture to understand international negotiations recognize that negotiation behavior is determined by multiple factors, and using culture as the sole explanation of behavior is oversimplifying a complex social process.

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