Other things remaining the same, the U.S. interest rate differential increases if the U.S. interest rate
A) rises and foreign interest rates remain constant.
B) falls and foreign interest rates remain constant.
C) falls and foreign interest rates rise.
D) remains constant and foreign interest rates rise.
A
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Suppose that you lend $1,000 to a friend and he or she pays you back one year later. What is the opportunity cost of lending the money?
A) the nominal interest rate that would have been earned on the money B) There is no cost. C) the implicit cost of the money D) the real interest rate that would have been earned on the money
Water supply problems are widespread, indicating that
a. water markets can seldom work, because water Is a necessity. b. property rights are frequently incomplete and not fully tradable. c. water is too important to ration by price. d. water markets are seldom controlled by government.