Bonds that pay no periodic (annual) interest are

Bob inherits a large sum of money from his dead uncle's estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of

A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) None of the above is correct.

Assume the interest parity condition holds and that initially i = i*. A reduction in the domestic interest rate will cause

A) an increase in the demand for the domestic currency. B) a reduction in E. C) an expected depreciation of the domestic currency. D) all of the above