Suppose that $1 U.S. costs $1.50 Canadian. If in St. Louis a CD costs $10 U.S. and in Montreal it costs $15 Canadian, then ________
A) purchasing power parity holds
B) Canadians will buy CDs in St. Louis
C) Americans will buy CDs in Montreal
D) Virgin Records will have an incentive to build more stores in North America
A
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Return on investment is calculated as:
a) the amount invested divided by earnings. b) the amount invested divided by the interest rate. c) earnings divided by the amount invested. d) earnings divided by the interest rate.
Imposing a new $10 downtown parking tax a. would be a negative incentive that might have the positive result of reducing downtown congestion. b. would be a positive incentive that might have the positive result of reducing downtown congestion. c. would be a negative incentive that could only have negative results
d. None of the above is true.