Suppose you observe a spot exchange rate of $1.0500/€. If interest rates are 5% APR in the U.S. and 3% APR in the euro zone, what is the no-arbitrage 1-year forward rate? Multiple Choice €1.0300/$ $1.0300/€ €1.0704/$ $1.0704/€

Answers

Answer 1
Answer:

Answer:

Forward rate= Spot rate * (1+ US interest rate)/(1+Euro interest rate)

= 1.05*1.05/1.03

Forward rate= $1.0704/€

Explanation:


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When economists measure opportunity cost to help determine the true value of economic decisions

Answers

Opportunity Cost

An opportunity cost is defined as the value of a forgone activity or alternative when another item or activity is chosen. Opportunity cost comes into play in any decision that involves a tradeoff between two or more options. It is expressed as the relative cost of one alternative in terms of the next-best alternative. Opportunity cost is an important economic concept that finds application in a wide range of business decisions.

Final answer:

Opportunity cost refers to the potential benefit one misses out when choosing one alternative over another. It is used in economics to determine the true value of economic decisions by quantifying what is given up to get what is wanted. The opportunity cost would be any other potential investments that could have been made, representing the missed opportunity.

Explanation:

Opportunity cost is a core concept in economics and it refers to the potential benefit an individual or a business misses out on when choosing one alternative over another. In essence, it's the loss of potential gain from other alternatives when one alternative is chosen. It helps to determine the true value of economic decisions by quantifying what we give up to get what we want.

For example, imagine you have $10,000 and you decide to invest it in stocks. The opportunity cost would be any other potential investments you could have made with that money, such as buying bonds, purchasing real estate, or even keeping the money in a savings account. The value of the best forgone alternative - in this case, the potential returns from bonds, real estate, or savings - represents the opportunity cost of your decision to invest in stocks.

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Suppose the economy is producing at the natural rate of output. Assuming a fixed natural rate of output and everything else held constant, the development of a new, more productive technology will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run.

Answers

Answer:

B. A decrease; a decrease

Explanation:

There will be a decrease in the unemployment rate because the development of a new, more productive technology will cause an increase in the employment status of the suppose economy in the short run. Also in the short run, due to decreases in unemployment rate, there will also be a decrease in inflation rate as productivity will go up and the general level of prices in the supposed economy will go down od decrease.

Answer:

hi your question is incomplete here is the complete question and options

Suppose the economy is producing at the natural rate of output. Assuming a fixed natural rate of output and everything else held constant, the development of a new, more productive technology will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run.

A) an increase; an increase

B) a decrease; a decrease

C) a decrease; an increase

D) no change; no change

Answer : A decrease, a decrease ( B )

Explanation:

All others factors of production been equal the development of a new, more productive technology will cause the unemployment rate to decrease in the short run because the development of the new productive technology will drive the need to employ manpower to operate and control this new technologies in the short run.

Increase in production will see supply stable and the demand and supply of goods and services will be at equilibrium eliminating room for inflation

Judy needs to take out a personal loan for $2,500 for tuition assistance. Her bank has offered her one of the four loan packages outlined in the chart below. Determine which of the four loans will be cheapest for Judy in the long run. All interest rates are compounded monthly. Loan Duration (Months) Interest Rate A 12 9. 50% B 24 8. 75% C 36 7. 75% D 48 6. 60% a. Loan A b. Loan B c. Loan C d. Loan D.

Answers

Based on the present values of the personal loan of $2,500 at their different duration and interest rates, the cheapest loan is a. Loan A.

Data and Calculations:

Loan  Duration (Months)   Interest Rate          Payments        Total Interest

                                                                   Monthly      Total        Expense

A                    12                      9. 50%      $219.21     $2,630.51     $130.51

B                   24                      8. 75%      $113.93       $2,734.21   $234.21

C                   36                      7. 75%       $78.05     $2,809.90   $309.90

D                   48                      6. 60%      $59.40     $2,851.33    $351.33

Personal loan amount = $2,500

Thus, Loan A is the cheapest because it has the highest present value and the lowest interest expense.

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Suppose you're using an operant conditioning approach to teach someone how to use a bow and arrow. You begin by teaching your student how to hold a longbow. Then you show him how to maintain balance while holding the bow. Finally, you show him how to aim and properly release the arrow toward a target at the correct moment. This operant conditioning approach is called shaping.b. programmed learning.
c. approximation.
d. partial reinforcement

Answers

Answer: The correct answer is "shaping".

Explanation: Shaping: This method is based on the fact that the subject must perform behaviors that in the first instance will seem to him the objective behavior but that as these behaviors change they change to form what the objective behavior would be.

It is an operant conditioning method.

The answer is not (B) programmed learning.

In order to be more competitive globally, production techniques such as enterprise resource planning and lean manufacturing are being used by American manufacturers.

Answers

The correct answer for the question that is being presented above is this one: "TRUE." In order to be more competitive globally, production techniques such as enterprise resource planning and lean manufacturing are being used by American manufacturers. This is true.

Which of the following correctly defines the terms below? balance of trade balance of paymentsa. Balance of payments captures all international debts; balance of trade projects national trade deficits.
b. Balance of trade calculates the top producing nations; balance of payments calculates the weakest producing nations.
c. Balance of trade summarizes the flow of goods and services; balance of payments summarizes all capital flows.
d. Balance of payments helps find out ...

Answers

The right answer for the question that is being asked and shown above is that: "c. Balance of trade summarizes the flow of goods and services; balance of payments summarizes all capital flows." This correctly defines the terms : balance of trade balance of payments