Because of the threat of arbitrage, the forward rate must equal the spot rate at all times

Indicate whether the statement is true or false

FALSE

Economics

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In the Solow model, if saving per worker initially exceeds investment per worker,

A) the economy will experience inflation. B) the capital—labor ratio will increase. C) investment per worker will decline. D) saving per worker will decline.

Economics

Use the above table. Which of the following is TRUE if real disposable income is $150?

A) APC is less than MPC. B) APC = 0.8. C) APS = 0.2. D) APS is less than MPS.

Economics