Suppose you have one U.S. dollar with which you wish to purchase ...

[washai]

Suppose you have one U.S. dollar with which you wish to purchase U.K. (one-year) bonds in period t. Which of the following expressions represents the amount of U.K. pounds you will receive in one year (i.e., period t + 1 ) from purchasing U.K. bonds in period t?
 
  A) i
  B) 1 + i
  C) (1 + i)Eet+1/Et
  D) (1 + i)Et/Eet+1
  E) none of the above

Question 2

For this question, assume that Y = N. Based on our understanding of the labor market model presented in Chapter 6, we know that a reduction in the markup will cause
 
  A) an increase in the natural level of output.
  B) a reduction in the natural level of output.
  C) no change in the natural level of output.
  D) a reduction in the natural level of employment.

[af]

Answer to Question 1

D

Answer to Question 2

A

[washai]

Thank you

[af]

Happy to help you