A law that restricts plant closings will
A) make the economy more efficient by slowing down the movement of resources to a more optimal rate.
B) make the economy more efficient by reducing poor decisions on the part of entrepreneurs.
C) prevent resources from flowing to their highest-valued uses.
D) allow profits and losses to provide a signaling function.
C
Economics
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If the interest rate on a U.S. one-year bond is 2%, the interest rate on a Brazilian one-year bond is 8%, and the currency premium on reals (Brazilian currency) is 3%,
what is the expected rate of appreciation of the U.S. dollar according to interest-rate parity? A) -3% B) 3% C) 5% D) 6%
Economics
Would one expect economic growth to be higher or lower in a country that had poorly defined property rights? Why?
What will be an ideal response?
Economics