According to the interest parity condition, if the domestic interest rate is 12 percent and the foreign interest rate is 10 percent, then the expected ________ of the foreign currency must be ________ percent
A) appreciation; 4
B) appreciation; 2
C) depreciation; 2
D) depreciation; 4
B
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If the economy is not fully using its inputs, pumping money into the economy will put ________ pressure on interest rates and will tend to ________ output
A) upward; increase B) upward; decrease C) downward; increase D) downward; decrease
Of the following high-income countries, which has the highest female life expectancy at age 65?
A) Canada B) Japan C) the United Kingdom D) the United States
Zach Greinke's marginal product as a baseball player would be about the same as a Los Angeles Dodger and a Kansas City Royal. Why were the Dodgers willing to pay Greinke a higher salary than he was paid as a Royal?
A) The Dodgers needed a superstar to attract fans to their games. The Royals had no need to attract fans to their games. B) The owner of the Dodgers was under more pressure from the fans and the Los Angeles media to pay Greinke a higher salary than the Royals were willing to pay. C) The Dodgers play more home games than the Royals. As a result, the Dodgers earn more revenue from ticket sales that they can use to pay player salaries. D) Greinke's marginal revenue product is higher as a Dodger than it was as a Royal.
If a firm in a perfectly competitive market faces the cost curves in the graph shown, which of the following is true? The firm:
A. if it produces at profit-maximizing level of output it will make positive profits when price is higher than $15.
B. if it produces at profit-maximizing level of output it will make positive profits when price is higher than $11.
C. should always produce at least 43 units in order to maximize profits.
D. will shut down if market price is below $15, but above $11.