Which of the following parity conditions is (are) correct?
A) The purchasing-power parity theory states that in the long run exchange rate changes tend to
reflect international differences in inflation rates.
B) The interest-rate parity theory states that the forward premium/discount should be equal and
opposite in size to the national interest rate differential.
C) The international Fisher effect states that national interest rate differentials are the result of
inflation differentials.
D) All of the above are correct.
D
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When a factory dumps toxic waste into a river and pollutes the river, the costs borne by society in order to clean up the mess is called a(n):
A. externality. B. internal diseconomy. C. internal economy. D. natural monopoly.
Karl was diagnosed with cancer and had to quit work because he was very sick
Debts began to grow and Karl now owes $100,000 to the bank and credit card companies, plus $12,000 in unpaid child support payments, plus he still owes $80,000 on the mortgage on his condominium. Karl is hoping to avoid going bankrupt. Which of the following should Karl do at this stage? A) file a Division 1 Proposal B) file a Division 2 Proposal C) file a CCAA proposal D) pay his mortgage but default on his other debts E) he should declare bankruptcy and all his debts would be erased and he can still keep his condo