Assume That U

question 17

Multiple Choice

Assume that U.S. and British investors require a real return of 2%. If the nominal U.S. interest rate is 15%, and the nominal British rate is 13%, then according to the IFE, the British inflation rate is expected to be about ____ the U.S. inflation rate, and the British pound is expected to ____.

• A) 2 percentage points above; depreciate by about 2%
• B) 3 percentage points above; depreciate by about 3%
• C) 3 percentage points below; appreciate by about 3%
• D) 3 percentage points below; depreciate by about 3%
• E) 2 percentage points below; appreciate by about 2%

Identify and explain the modifications to common law of contracts brought by Article 2 of the UCC, especially regarding consideration.

Differentiate between types of contracts (e.g., output and requirements contracts versus illusory promises).

Analyze the adequacy of consideration and its role in the enforceability of contracts.

Recognize the elements necessary for a binding contract, including bargained-for exchange and legal sufficiency.

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Definitions:

Existing Assets

Tangible or intangible resources that a company currently owns and uses in its operations.

Financial Transactions

The exchange of monetary assets between parties, including buying, selling, or trading of goods, services, or financial instruments.

Used Goods

Items that have been previously owned and utilized by another party, often sold at a lower price than equivalent new items.

National Income

The total income earned by a country's residents and businesses, including wages, profits, and taxes minus subsidies, within a specific time period.