Author Question: While producing on the production possibilities frontier, if additional units of a good could be ... (Read 63 times)

LaDunn · **on:** Jun 29, 2018

While producing on the production possibilities frontier, if additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be

A) bowed outward.
B) bowed inward.
C) positively sloped.
D) a straight line.

Question 2

Suppose a deposit in New York earns 6 percent a year and a deposit in London earns 4 percent a year. Interest rate parity holds if the

A) U.S. dollar appreciates by 2 percent a year.
B) U.S. dollar depreciates by 2 percent a year.
C) U.K. pound depreciates by 2 percent a year.
D) None of the above answers is correct because interest rate parity requires that the interest rates be the same in both countries.