The demand for corn has increased in May without any change in supply. Eight months later there still has been no change in corn prices. This is an example of a

A. sticky price.
B. macroeconomic price.
C. price floor.
D. price control.

Answer: A

Economics

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When domestic and foreign currency bonds are imperfect substitutes, the domestic interest rate (R) can be written as

A) R = R - (Ee - E)/E + ?. B) R = R - (Ee - E)/E. C) R = R + (Ee - E)/E + ?. D) R = R - (Ee + E)/E + ?. E) R = R - (Ee - E)?.

Economics

Speculation would involve using forward contracts and options to reduce the exchange rate risk on future foreign exchange transactions

Indicate whether the statement is true or false

Economics