A nation's country-risk premium can be divided into two major parts:

a. Market risk premium and foreign exchange risk premium.
b. Market risk premium and credit risk premium.
c. Market risk and expected inflation premium
d. Market risk premium and political/social risk premium.

.D

Economics

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Firms in monopolistic competition maximize their profit by setting their price equal to their marginal revenue

Indicate whether the statement is true or false

Economics

Monetarists argue that fiscal policy is ineffective because:

A. the velocity of money is predictable. B. the crowding-out effect reduces investment. C. prices and wages are sticky in the short run. D. it causes the value of the dollar to depreciate.

Economics