Suppose that one-year Treasury bills yield 4 percent in the United States and 5 percent in Germany. Investors will be indifferent between them if they expect the dollar over the next year to
A) depreciate against the euro by approximately 1 percent.
B) appreciate against the euro by approximately 1 percent.
C) depreciate against the euro by exactly 20 percent.
D) appreciate against the euro by exactly 20 percent.
B
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The first mover in an extensive-form game should use ________ to win the game
A) forward induction B) backward induction C) pure strategies D) mixed strategies
Refer to the above graph, which shows the market for bicycles. S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), which point on the graph is most likely to be the new equilibrium after an increase in wages of bicycle workers, and a significant increase in the price of gasoline?
What will be an ideal response?
If there are a number of inexpensive substitutes for labor in the production process, labor:
A. supply will most likely be inelastic. B. supply will most likely be elastic. C. demand will most likely be elastic. D. demand will most likely be inelastic.
Refer to the graph below. The amount of profit is measured by the difference between:
A. a and c
B. b and c
C. d and e
D. a and f