Deviations from purchasing power parity will be increasingly higher as international trade tariffs become more restrictive. The main reason for this phenomenon is that:
a. arbitrage activities become less profitable.
b. governments prefer purchasing power parity not to hold.
c. the interest rate parity fails to hold.
d. goods become more differentiated across countries.
e. individuals develop hatred toward closed economies.
a
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When banks need to borrow funds at the end of the day to meet their legal reserve requirement, they
a. borrow the required funds from the Fed on the federal funds market b. borrow the required funds from other banks on the federal funds market c. ask for extensions on the deadline to meet their requirements, but pay a federal fundsrate as a penalty d. engage in open market operations on the federal funds market e. borrow from the government which reduces the government's public debt
Which of the following is a microeconomic statement?
A. The price of personal computers declined 4.7 percent last year. B. The real domestic output increased by 2.3 percent last year. C. The general price level increased by 3.1 percent last year. D. Unemployment was 6.5 percent of the labor force last year.