A firm that buys foreign exchange in order to take advantage of higher foreign interest rates is
A) speculating.
B) demonstrating purchasing power parity.
C) engaging in interest rate arbitrage.
D) responding to fluctuations in the business cycle.
E) ignoring the nominal rate of exchange.
C
Economics
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The only way to avoid the free rider problem is to allow the government to provide a public good
a. True b. False Indicate whether the statement is true or false
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Economic theory suggests that the standard of living of American workers would fall if the
a. knowledge and skills of workers improved, reducing the need for workers. b. United States had more natural resources. c. United States turned to more automated methods of production. d. productivity of American workers declined.
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