In equilibrium, if both uncovered and covered interest parity hold, what condition should exist?
a. World interest rates will be equal.
b. Rates of inflation will equalize.
c. The forward rate will equal the expected future spot rate.
d. The forward rate will decrease as the spot rate rises.
Ans: c. The forward rate will equal the expected future spot rate.
Economics
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Since 1948, the average unemployment rate in the United States has been about
A) 3%. B) 6%. C) 8%. D) 10%.
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If the tax system is made more progressive, the pre-tax wages of low-income workers would _____
a. fall b. rise c. stay constant d. rise or fall depending upon job market conditions
Economics