If a person is risk neutral, then she
A) is indifferent about playing a fair game.
B) will pay a premium to avoid a fair game.
C) has a horizontal utility function.
D) has zero marginal utility of wealth.
A
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Assume that at the beginning of 2012, one dollar could be traded for 5 yuan. If in 2013 one dollar was being traded for 6 yuan, it can be concluded that:
A) the dollar appreciated against the yuan and the yuan depreciated against the dollar in 2013. B) the real exchange rate changed in 2013 assuming PPP holds. C) the nominal exchange rate did not change in 2013. D) the dollar depreciated against the yuan and the yuan appreciated against the dollar in 2013.
Describe the policy of "outright monetary transactions" or 0MT presented by the president of the European Central Bank in 2012
What will be an ideal response?