If in Chicago the interest rate is 5 percent a year and in Vancouver it is 4 percent a year, ________
A) the quantity of Canadian dollars purchased will increase
B) the Canadian dollar is expected to depreciate
C) interest rate parity does not exist
D) the U.S. dollar is expected to depreciate
D
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Suppose that a non-discriminating monopolist lowers its price from $75 to $70 in order to sell more output. Marginal revenue will
a. equal $75 b. equal $70 c. be between $75 and $70 d. be less than $70 e. be greater than $75
Evidence from a study of the market for baseball players using 1960s data
a. indicated that sports with strong player associations are unlikely to experience wage discrimination. b. suggested that government regulation had eliminated most evidence of wage discrimination. c. found some evidence of consumer-driven wage discrimination. d. found that measurement of marginal productivity was very difficult for baseball players.