Moneyland uses Money and Cashtan uses Cash, as their currencies. Currently, spot exchange rate is 1.25 Money = 1 Cash. The three-month forward exchange rate is 1.30 Money = 1 Cash. The currency market is assumed perfect, and the International Fisher Effect holds. Which of the following statements is
In the Lego movie (2014) the hero (Emmet) is happy and we hear: "Drink overpriced coffee!". Emmet gets his coffee and Barista says: "Here you go, that's $37" Emmet responses: "Handsome!" and picks the coffee. This means that his price elasticity of demand might be around:
Consider an economy that produces only three types of goods and services: cars, bottles of wine, and haircuts. In the table below, you can find the price (in dollars) and production (in units) data for 2021 and 2022. Using nominal and real GDP calculations (with 2021 being the base year), choose the
Calculate the price (effective value) of a zero-coupon bond with a nominal value of $210,000, which was issued 34 days ago with an original term of 180 days if it is traded at 8% yield. (suppose a year has 360 days)
