If a policymaker wants to stimulate the economy, a ________ would be preferable to a ________
A) lower-valued multiplier; higher valued multiplier
B) high MPS; low MPS
C) low MPC; high MPC
D) high MPC; low MPC
D
Economics
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What percent of currency transactions involve a trade in the spot market?
a. 30% b. 40% c. 60% d. 90%
Economics
Suppose you are a U.S. exporter expecting to receive a payment of NZD1,000 (New Zealand dollars) in 12 months. The annual interest rate on NZD deposits is 5 percent, and the annual interest rate on dollar deposits is 9 percent. If the present exchange rate is $0.50 per NZD and interest rate parity holds, how many dollars do you expect to receive at the maturity date of the export contract?
a. $2,000 b. $1,923 c. $1,000 d. $580 e. $520
Economics