Assume the interest parity condition holds and that individuals ...

[Mr3Hunna]

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

[chem1s3]

Answer to Question 1

C

Answer to Question 2

B

[Mr3Hunna]

YES! Correct, THANKS for helping me on my review

[Laurenleakan]

Thanks for the timely response, appreciate it