From uncovered interest parity, we know that when the domestic currency is expected to depreciate, the domestic interest rate should be
A) greater than the foreign interest rate
B) greater than the foreign return
C) less than the foreign interest rate
D) less than the foriegn return
Ans: A) greater than the foreign interest rate
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In the figure above, when the price falls from $8 to $7, total revenue
A) increases from $120 to $210 so demand is elastic. B) decreases from $210 to $120 so demand is inelastic. C) increases from $120 to $210 so demand is inelastic. D) decreases from $210 to $120 so demand is elastic. E) increases from $120 to $210, but more information is needed to determine whether demand is elastic, inelastic, or unit elastic.
The data in the above table indicate that the economy will be in a short-run macroeconomic equilibrium at a price level
A) between 130 and 121. B) between 119 and 111. C) of 120. D) of 110.
The Supreme Court's decision in the Standard Oil of New Jersey case was
A. to break up the company. B. to force the company to send refund checks to customers. C. to increase the fine imposed by a lower court. D. to force the company to pay $10 billion in fines.
The slope of a non-linear curve
A. is constant. B. is always positive. C. is not constant. D. must first increase then decrease.