Using the information in this chapter, label each of the following statements true, false, or uncertain. explain briefly.

(a) the interest rate parity condition means that interest rates are equal across countries.
(b) other things being equal, the interest parity condition implies that the domestic currency will appreciate in response to an increase in the expected exchange rate.
(c) if financial investors expect the dollar to depreciate against the yen over the coming year, one-year interest rates will be higher in the united states than in japan.
(d) if the expected exchange rate appreciates, the current exchange rate immediately appreciates.
(e) the central bank influences the value of the exchange rate by changing the domestic interest rate relative to the foreign interest rate.
(f) an increase in domestic interest rates, all other factors equal, increases exports.
(g) a fiscal expansion, all other factors equal, tends to increase net exports.
(h) fiscal policy has a greater effect on output in an economy with fixed exchange rates than in an economy with flexible exchange rates.
(i) under a fixed exchange rate, the central bank must keep the domestic interest rate equal to the foreign interest rates.

If you want to compare two different investments, what should you calculate

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

Schonhardt corporation's relevant range of activity is 2,500 units to 5,500 units. when it produces and sells 4,000 units, its average costs per unit are as follows: averagecost per unitdirect materials $ 7.60direct labor $ 2.90variable manufacturing overhead $ 1.65fixed manufacturing overhead $ 2.90fixed selling expense $ 0.95fixed administrative expense $ 0.65sales commissions $ 0.75variable administrative expense $ 0.65if 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: multiple choicea $16,800b $11,400c $11,600d $15,400