Pegging a country's exchange rate to the dollar can be advantageous in all of the following situations except
A) if investors believe the dollar to be more stable than the domestic country's currency.
B) if a country wishes to conduct independent monetary policy.
C) if imports are a significant fraction of the goods the country's consumers buy.
D) if the country has extensive trade with the United States.
B
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The interest rate that equates the present value of payments received from a debt instrument with its value today is the
A) simple interest rate. B) current yield. C) yield to maturity. D) real interest rate.
In which set of market models are there the most significant barriers to entry?
A. Monopolistic competition and pure competition B. Monopolistic competition and pure monopoly C. Oligopoly and monopolistic competition D. Oligopoly and pure monopoly