According to UIP, when domestic and foreign interest rates are equal, the exchange rare of the home currency is expected to

a) fall
b) remain contact
c) rise
d) not enough information is provided

Ans: b) remain contact

Economics

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The quantity of goods and services that can be produced by one worker or by one hour of work is known as

A) per-capita GDP. B) labor productivity. C) real domestic output. D) the labor force participation rate.

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In which of the following situations is the principal-agent problem least likely to occur?

a. a hospital stay b. a doctor's visit c. a bartender serves you at the bar d. your TV is repaired e. a stockbroker calls with financial advice

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