Explain briefly PPP and IRP. Why might the latter hold better than the former over time?
What will be an ideal response?
IRP holds better because financial asset prices adjust faster to new information than goods prices.
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Foreign factories produce ________ of the shoes New Balance sells in the United States
A) none B) less than 15 percent C) roughly half D) about 75 percent
Which of the following best explains the cause of the change in the unemployment rate at the end of a recession?
A) Firms rapidly hire new workers at the first sign of an increase in demand for their goods. B) Firms are hesitant to rehire laid-off workers as they continue to operate below capacity. C) Discouraged workers begin to return to the labor force, causing the unemployment rate to fall. D) Frictionally unemployed workers find it easier to gain employment, lowering the natural rate of unemployment.
According to the quantity theory of money, an increase in the stock of precious metals or bills of exchange usually results in increased trade and rising prices. Both economic events helped merchant capitalists and the king
Indicate whether the statement is true or false
Why is limited liability so important when firms try to raise large amounts of financial capital? How is this advantage of a corporation tied to a disadvantage of a corporation?
What will be an ideal response?