If the forward rate for a foreign currency is less than the spot rate, the foreign currency is selling at a forward premium.

The key characteristic of an oligopolistic market is:

A) production of a homogeneous product. B) mutual interdependence among firms in the market. C) the absence of market power by any one firm. D) ease of entry into, and exit out of, the market.

If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in the expected rate of inflation?

a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate does not change and the quantity per time period does not change. d. The real risk-free interest rate rises and the quantity per time period is uncertain. e. The real risk-free interest rate is uncertain and the quantity per time period is uncertain.