If the nominal expected return on foreign assets is higher than on dollar assets ________
A) foreigners will want to hold additional dollar assets
B) Americans will want to hold additional dollar assets
C) foreigners will want to hold fewer foreign assets
D) foreigners will want to hold additional foreign assets
D
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Assume that a firm spends $500 on two inputs, labor (graphed on the horizontal axis) and capital (graphed on the vertical axis)
If the wage rate is $20 per hour and the rental cost of capital is $25 per hour, the slope of the isocost curve will be A) 500. B) 25/500. C) -4/5. D) 25/20 or 1.25.
Does utility analysis explain children's behavior? Children love to play "dare" games. Does this sound familiar: "I dare you to ring Mr. Hollub's doorbell and wait until he answers before you run"? What makes a child take the dare? a. If the utility of getting caught is positive, the dare is taken. b. If the total utility gained from the dare is greater than the marginal utility of getting
caught, the dare is not taken. c. If the total utility gained from the dare is greater than the marginal utility of getting caught, the dare is taken. d. The child adds up the sum of the positive utility in taking the dare and the negative utility of getting caught. If the sum is positive, the dare is not taken. e. The child compares the positive utility gained in taking the dare with the negative utility of getting caught. If the sum of the positive utility and negative utility ispositive, the dare is taken.