The nominal interest rate in the U.S. is 5% and the nominal interest rate in Canada is 3%. The spot value of the U.S. dollar is 1 ($/Canadian dollar) and the forward rate is 1.2 ($/Canadian dollar). Which of the following is NOT true?
A) The dollar is likely to appreciate in spot markets.
B) The interest parity condition does not hold.
C) The dollar is trading at a forward discount.
D) Money will flow into the Canada.
A
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When a start-up company meets with success and the entrepreneur needs to achieve economies of scale, it would not make economic sense to consider an IPO
a. True b. False
Section 1 of the Sherman Antitrust Act makes it illegal to
A) form a monopolistically competitive firm. B) restrain trade. C) price discriminate. D) have an oligopoly.
Which of the following is NOT true about indifference curves?
A. Indifference curves show equally preferred combinations of two goods. B. Indifference curves are not straight lines because the marginal rate of substitution falls. C. Indifference curves shift when prices change. D. Indifference curves slope downward.