In order for an individual to be indifferent between holding foreign or domestic bonds,
A) the Marshall-Lerner condition must hold.
B) the foreign and domestic interest rates must be equal.
C) the expected rate of depreciation of the domestic currency is zero.
D) the interest parity condition must hold.
D
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From an economist's viewpoint, discrimination occurs if there is a wage differential between two groups when there is no difference in the marginal revenue product of the two groups
a. True b. False Indicate whether the statement is true or false
Table 9.1 Disposable IncomeTotal Consumption(Billions of dollars per year)(Billions of dollars per year)$0$50200210What is the rate of saving when income equals $1,000 billion in Table 9.1?
A. $100 billion. B. $250 billion. C. $150 billion. D. Zero.
The concept of limited liability
A) does not apply to a corporation. B) means that the owners of a corporation have liability limited to the value of the shares in the firm. C) means that owners of a firm are subject to double taxation. D) limits the amount of specialization that can occur in a firm.
In an oligopolistic market, each firm
A) has a constant marginal cost. B) faces a perfectly elastic demand function. C) must consider the reaction of rival firms when making a pricing or output decision. D) produces at minimum average cost in the long run.