The Canadian Firm Wants to Borrow in Euros and the }

question 16

Multiple Choice

$\begin{array}{lcc} &\text { Canadian interest rate }&\text {french interest rate }\\& \text { on CS loans } & \text { on euro loans } \\\text { Canadian firm } & 5 \% & 5.5 \% \mathrm{a} \\\text { Freneh firm } & 6 \% & 5.5 \%\end{array}$
The Canadian firm wants to borrow in euros and the French firm wants to borrow in Canadian dollars.
-Find QSD

• A) 1%
• B) 1.2%
• C) 2.2%
• D) 3.2%

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Definitions:

Labor Supply Decisions

The determination by individuals regarding how much they are willing to work, influenced by wages, working conditions, and personal preferences.

Market Wage

The prevailing rate of pay for workers in a specific market, determined by the supply of and demand for labor.

Leisure

Free time available to an individual when not engaged in work or essential activities, often used for relaxation or recreational activities.

Pareto Efficient

An allocation of resources from which it is impossible to reallocate to make any one individual better off without making at least one individual worse off.