Departures from interest parity

A) can be explained using theories of risk premium.
B) cannot be explained using theories of risk premium.
C) may or may not be able to be explained using theories of risk premium, more research is needed.
D) are completely unrelated to risk premium.
E) occur when risk premium is over calculated.

C

Economics

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One important difference between the international economy of today and the economy of 100 years ago is

A) that labor is much more mobile. B) for the first time, technological innovations have reduced the barrier of distance. C) for the first time, capital is mobile. D) the presence of international bodies such as the IMF and World Bank.

Economics

Regarding income distribution and the distribution of wealth

A) wealth is a stock concept and income a flow concept. B) a stock is evaluated at a given moment in time; a flow is evaluated during a period of time. C) income, a flow, can be viewed as a return on wealth. D) All of the above are correct.

Economics