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Author Question: Assume the interest parity condition holds and that individuals expect the dollar to appreciate by 5 ... (Read 78 times)

Mr3Hunna

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on: Jun 30, 2018
Assume the interest parity condition holds and that individuals expect the dollar to appreciate by 5 during the coming year. Given this information, we know that
 
  A) the interest rate differential between the two countries is less than 5.
  B) i < i.
  C) i = i.
  D) individuals will only hold foreign bonds.
  E) none of the above

Question 2

A reduction in the minimum wage will tend to cause which of the following?
 
  A) an upward shift in the WS curve
  B) a downward shift in the WS curve
  C) an upward shift in the PS curve
  D) a downward shift in the PS curve
  E) none of the above


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chem1s3

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

C

Answer to Question 2

B


Mr3Hunna

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Reply 2 on: Jun 30, 2018
Gracias!

bigsis44

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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