Suppose the 1-year risk-free rate of return in the U. S. is 4%, and the 1-year risk-free rate of return in Britain is 7%. The current exchange rate is 1 pound = U. S. $1.65. A 1-year future exchange rate of for the pound would make a U. S. investor indifferent between investing in the U. S. security and investing in the British security.

What is "staffing level"? a) the practice of assigning the same number of workers to each department b) the average educational level attained by employees of a business c) the rank above cashier d) the number of workers assigned to jobs at a particular time

For many years, kellogg's frosted flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. tony the tiger, a cartoon character, extolled frosted flakes, and advertisements depicted children enjoying the product with tony in competitive situations. recently, in response to declining sales of frosted flakes, the cereal maker has adopted a new series of advertisements that show adults admitting that they enjoy frosted flakes, too. kellogg's is attempting to

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes