The interest rate charged on a Eurodollar loan will be:
a. higher than the interest rate charged on a U.S. loan.
b. lower than the interest rate charged on a U.S. deposit.
c. essentially equal to the interest rate charged on a Eurodollar deposit.
d. lower than the London interbank offer rate.
e. lower than the interest rate charged on a U.S. loan.
e
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If there is a monopsony operating in the labor market illustrated in the figure above, the equilibrium wage and quantity of labor hired is
A) $15 and 50 hours. B) $10 and 100 hours. C) $10 and 50 hours. D) $5 and 50 hours.
If the social marginal cost of a good is very high relative to the private marginal cost, then a monopoly will most likely
A) produce more than the social optimum. B) produce less than the social optimum. C) produce the social optimum. D) produce zero pollution.