Suppose that one-year Treasury bills yield 6 percent in the United States and 4 percent in Britain. Investors will be indifferent between them if they expect the dollar to

A) depreciate against the pound by approximately 2 percent.
B) appreciate against the pound by approximately 2 percent.
C) depreciate against the pound by approximately 33 percent.
D) appreciate against the pound by approximately 33 percent.

A

Economics

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If Option A costs $40 and yields 20 units of output and Option B costs $50 and yields 30 units of output,

A) Option B and Option A are equally economically efficient. B) Option B is economically efficient relative to Option A. C) Option A is economically efficient relative to Option B. D) It is not possible to determine which option is more economically efficient.

Economics

Price and quantity in Bertrand and Cournot models

A) are the same. B) are different. C) might be the same depending on whether the products are identical or differentiated. D) are the same as in a duopoly.

Economics