If UIP holds, the foreign interest rate is 10%, and the home currency is expected to depreciate by 4%, then the home interest rate is:

The ability to lower the average costs of production for two or more products is possible with

a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope

Which of the following taxes is based on the benefit principle?

a. Income taxes paid for national defense b. Payroll taxes paid for Social Medicare c. Education taxes paid by parents d. Income taxes paid for scientific research