In late 2010 the National Bank of Australia offered a 4 percent ...

[Chelseaamend]

In late 2010 the National Bank of Australia offered a 4 percent interest rate on a savings account while Bank of America offered 2 percent. This difference means that
 
  A) people expect the U.S. dollar to appreciate to 8 percent against the Australian dollar and interest rate parity to occur.
  B) there will be a surplus of U.S. dollars in the foreign exchange market.
  C) people expect the U.S. dollar to appreciate by 2 percent against the Australian dollar and interest rate parity to occur.
  D) there will be a shortage of Australian dollars in the foreign exchange markets.

Question 2

If the wage rate is ________ the value of marginal product, a firm can increase its profit by ________.
 
  A) greater than; selling an extra unit of output
  B) less than; selling one less unit of output
  C) less than; hiring an extra worker
  D) less than; hiring one less worker

[matt]

Answer to Question 1

C

Answer to Question 2

C

[Chelseaamend]

Excellent

[marict]

TYSM