Use the Following Information to Answer Questions 6-9

question 32

Multiple Choice

Use the following information to answer questions 6-9.
Table 6.1: Spot and Forward Exchange Rates on May 5, 2012.

-Refer to Table 6.1.Comparing the yen's forward rates against the yen's spot rate,over the period of a forward contract,we would expect the yen's spot rate to:

• A) remain constant against the dollar
• B) appreciate against the dollar
• C) depreciate against the dollar
• D) depreciate against the dollar in the first 30 days and then appreciate afterward.

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Definitions:

Labor Demand Data

Information representing the quantity of labor that employers are willing and able to hire at different wage rates.

Labor Supply Data

Information and statistics related to the number of individuals available and willing to work at different wage levels in an economy.

Marginal Product

The additional output that results from the use of one more unit of a factor of production, keeping all other factors constant.

Monopsonist

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices and terms.