The condition that states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of the domestic currency is called
A) the purchasing power parity condition.
B) the interest parity condition.
C) money neutrality.
D) the theory of foreign capital mobility.
B
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Each of the following would shift a nation's production possibilities frontier outward, but which is least likely to be accompanied by an increase in the standard of living?
a. population growth b. increased investment in private physical capital c. increased investment in human capital d. technological advances e. increased investment in infrastructure
Consider two people, Sandy Roos, who earns $25,000 . and Gary Behrman, who earns $50,000 . If the flat-tax rate is 20 percent, then
a. the government collects a total of $20,000 b. Gary pays twice the tax amount Sandy pays c. Gary pays three times the tax amount Sandy pays d. Gary and Sandy pay exactly the same tax amount e. Gary pays $15,000 in taxes