Suppose a Canadian investor buys a one-year U.S. government bond that pays 7 percent interest. If the U.S. dollar appreciates 4 percent against the Canadian dollar during the year, what must be the yield on a comparable Canadian government bond for interest rate parity to hold?

Universal child support assurance would cost little more than the present system

Indicate whether the statement is true or false

A consumer chooses an optimal consumption point where the

a. marginal rate of substitution exceeds the relative price ratio. b. slope of the indifference curve equals the slope of the budget constraint. c. ratio of the prices equals one. d. All of the above are correct.