Interest rate parity can be summarized by which of the following equilibrium conditions?
a. The foreign interest rate must equal the domestic interest rate plus the expected inflation.
b. The foreign interest rate must equal the domestic interest rate.
c. The foreign interest rate must equal the expected change in the exchange rate.
d. The domestic interest rate must equal the foreign interest rate plus the expected change in exchange rate.
e. The domestic interest rate must equal the foreign interest rate minus any expected inflation.
d
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Refer to Figure 10.3. What quantity will the monopsonist purchase to maximize profit?
A) Q1 B) Q2 C) Q3 D) Q4 E) none of the above
When the production possibilities curve is bowed out, resources are:
a. equally well-suited to production of both goods. b. not being used efficiently. c. not equally suited to the production of both types of goods. d. increasing as more of one good is produced. e. of an inferior quality.
Stocks are a
A) form of equity. B) form of debt. C) form of debt and equity. D) just a way for firms to borrow money.
The primary reason government chooses to regulate a natural monopoly is to
a. promote its eventual nationalization b. control price and output c. control profit d. create competition e. distribute market power more evenly among the firms in the industry