Assume that the interest parity holds and that the dollar is expected to appreciate against the pound. Given this information, we know that
A) U.S. and U.K. interest rates are equal.
B) the U.S. interest rate exceeds the U.K. interest rate.
C) the U.K. interest rate exceeds the U.S. interest rate.
D) individuals will prefer to hold U.S. bonds because the U.S. interest rate exceeds the U.K. interest rate.
E) none of the above
C
Economics
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An increase in the employment tax will have no effect on output if the labor supply curve
A) is perfectly vertical. B) has a positive slope. C) is perfectly horizontal. D) has a negative slope.
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A general-equilibrium analysis of the impact of a tax on the peanut butter market would include an investigation of the impacts in
A) the television market. B) the coffee market. C) the salsa market. D) the jelly market.
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