If the forward exchange rate of the dollar in terms of pounds is less than the spot exchange rate,
A) inflation must be lower in the United States than in Britain.
B) inflation must be higher in the United States than in Britain.
C) market participants must be expecting the dollar to appreciate against the pound.
D) market participants must be expecting the dollar to depreciate against the pound.
D
You might also like to view...
Suppose your college sharply raises tuition rates next year. Other things constant, what is the least likely to occur?
A) The overall demand for courses at your college will fall. B) Your college bookstore will sell fewer textbooks. C) It will be easier to find parking at your college. D) Fewer students will use your college library.
If Shelly receives 15 units of utility from the first glass of orange juice, she is likely to receive more than 15 units of utility from the second glass
a. True b. False Indicate whether the statement is true or false
Which of the following is a characteristic of a monopolistically competitive market?I.Firms sell differentiated products.II.Each firm is earning a zero economic profit in the long run.III.Potential entrants face artificial barriers to entry.
A. I only B. I and II only C. II and III only D. I, II, and III
Economic expansions might lead to inflation because an expansion leads to
A) a decrease in the unemployment rate, which decreases wages. B) an increase in the unemployment rate, which decreases wages. C) an increase in the unemployment rate, which increases wages. D) a decrease in the unemployment rate, which increases wages.