An Australian investor buys a U.S. Treasury bond that has a price of $10,000 . pays 5 percent interest, and matures in a year. Between the purchase date and the maturity date, the exchange rate changes from $1 = AUD 5.0 to $1= AUD 5.2 . What will be the Australian investor's rate of return from the U.S. bond?

a. 4 percent
b. 7 percent
c. 9.2 percent
d. 12 percent
e. 25 percent

c

Economics

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An orthodox model calls for cutting government spending, reforming the tax system to increase compliance and revenues, and limiting the creation of new money

Indicate whether the statement is true or false

Economics

If a firm is a profit maximizer and faces positive marginal costs,

A) there is a natural limit to the size of the firm, where MR = 0. B) there is no natural limit to the size of the firm; it can be as large as it wants to be. C) there is a natural limit to the size of the firm, where MR > 0. D) there is no natural limit to the size of the firm, hence the need for government regulation.

Economics