In the graph above, what do the dotted lines represent?
A) transaction and opportunity costs
B) the boundaries of profitability for arbitrage
C) the risk premium associated with the countries
D) the variability in spot rate expectations
A
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What is the formula for the price elasticity of demand? The percentage change in the
A) quantity demanded divided by the percentage change in the price of a substitute or complement. B) quantity supplied divided by the percentage change in price. C) quantity demanded divided by the percentage change in price. D) quantity demanded divided by the percentage change in income. E) equilibrium quantity demanded divided by the equilibrium price.
Banks create money whenever they
A) accept a deposit. B) lend excess reserves to a borrower. C) receive monthly payments on their loans. D) receive interest on existing loans.