If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated assets, and if the dollar is expected to appreciate at a 4 percent rate, the expected return on ________-denominated assets in ________ percent
A) dollar; euros is 3
B) euro; dollars is 1
C) dollar; euros is 1
D) euro; dollars is 3
D
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Based on the following information, what is the balance on the current account?
Exports of goods and services = $5 billion Imports of goods and services= $3 billion Net income on investments = -$2 billion Net transfers = -$2 billion Increase in foreign holdings of assets in the United States = $4 billion Increase in U.S. holdings of assets in foreign countries = -$1 billion A) -$2 billion B) $1 billion C) $3 billion D) $4 billion
The inflow of foreign investment into the United States
A. Signals a lack of confidence in the U.S. economy. B. Has no effect on the U.S. economy. C. Diminishes production possibilities for the United States. D. Stimulates more economic growth for the United States.
Jack just received a promotion at work and now works 50 hours per week instead of 35. As a result,
A) the unemployment rate increased. B) the unemployment rate decreased. C) the labor force participation rate increased. D) neither the unemployment rate nor the labor force participation rate changed.
In 2018, Kendall Ford, an automobile dealership, spent $20,000 on a new car lift for its repair shop, $2,000 on a new copy machine for its sales division, and $600,000 on Ford Motor company stock. Unsold cars and trucks were valued at $400,000 on January 1, 2018 and unsold cars and trucks were valued at $900,000 on December 31, 2018. What is Kendall Ford's total investment spending in 2018?
A) $22,000 B) $322,000 C) $522,000 D) $1,022,000