Assume that the uncovered interest parity condition holds. Also assume that the U.S. interest rate is greater than the U.K. interest rate. Given this information, we know that investors expect
A) the pound to depreciate.
B) the pound to appreciate.
C) the dollar-pound exchange rate to remain fixed.
D) the U.S. interest rate to fall.
E) none of the above
B
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If fixed costs are $200,000 and variable costs are $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be
a. $20. b. $30. c. $50. d. $70.
Refer to the table. If your taxable income is $8,000, your average tax rate is:
A. 25 percent and the marginal rate on additional income is also 25 percent.
B. 25 percent and the marginal rate on additional income is 40 percent.
C. 25 percent and the marginal rate on additional income cannot be determined from the
information given.
D. 20 percent and the marginal rate on additional income is 30 percent.