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Author Question: The political wisdom of choosing a tariff acceptable to the median U.S. voter is A) a good ... (Read 25 times)

vHAUNG6011

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on: Jun 30, 2018
The political wisdom of choosing a tariff acceptable to the median U.S. voter is
 
  A) a good example of the principle of the second best.
  B) a good example of the way in which actual tariff policies are determined.
  C) a good example of the principle of political negotiation.
  D) not evident in actual tariff determination.
  E) usually evident in actual tariff determination.

Question 2

In order to infer expected future exchange rates, we must have a forward exchange market in a currency.
 
  Indicate whether the statement is true or false


maaaaaaaaaa

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

FALSE
Explanation: The interest differential between the interest rates on that currency and other currencies would allow us to infer expected future exchange rates, i.e., iD - iF = F - S/S.


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