3. According to relative PPP, if the U.S. interest rate is 9% and the Eurozone interest rate is 5%, then in the long run we would expect: A) the dollar to appreciate. B) the dollar to depreciate. C) the euro to appreciate. D) no change in the exchange rate. 4. Which of the following are explanations for sticky prices: A) long-term labor contracts. B) fixed exchange rates. C) menu costs. D) long-term labor contracts and menu cost

3. According to relative PPP, if the U.S. interest rate is 9% and the Eurozone interest rate is 5%, then in the long run we would expect: A) the dollar to appreciate. B) the dollar to depreciate. C) the euro to appreciate. D) no change in the exchange rate. 4. Which of the following are explanations for sticky prices: A) long-term labor contracts. B) fixed exchange rates. C) menu costs. D) long-term labor contracts and menu cost

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. According to relative PPP, if the U.S. interest rate is 9% and the Eurozone interest rate is 5%, then in the long run we would expect:

A) the dollar to appreciate.

B) the dollar to depreciate.

C) the euro to appreciate.

D) no change in the exchange rate.

4. Which of the following are explanations for sticky prices:

A) long-term labor contracts.

B) fixed exchange rates.

C) menu costs.

D) long-term labor contracts and menu costs

Please answer both sir i will rate

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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