Interest differentials cause exchange rate changes
Indicate whether the statement is true or false
FALSE
Explanation: In the real world interest rates, inflation expectations, and exchange rates are jointly affected by new information and new events. So, interest rates and exchange rates are determined simultaneously.
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The aggregate production function of Ritland is Y = A × K0.3 × H0.7. The total output produced in Ritland in a certain year was worth $135,000
The technology used in the country improved over the next 10 years while the capital stock and the efficiency units of labor remained approximately the same. Which of the following is likely to be true in this case? A) The Human Development Index of the country is likely to improve. B) The gross domestic product of the country is likely to increase. C) The gross domestic product of the country is likely to decrease. D) The inflation rate in the country is likely to reduce.
A statement of assets and liabilities of any business entity is
A) a sweep account. B) legal reserves. C) a balance sheet. D) net worth.