Using the information in this chapter, label each of the following statements true, false, or uncertain. explain briefly.

(a) the interest rate parity condition means that interest rates are equal across countries.
(b) other things being equal, the interest parity condition implies that the domestic currency will appreciate in response to an increase in the expected exchange rate.
(c) if financial investors expect the dollar to depreciate against the yen over the coming year, one-year interest rates will be higher in the united states than in japan.
(d) if the expected exchange rate appreciates, the current exchange rate immediately appreciates.
(e) the central bank influences the value of the exchange rate by changing the domestic interest rate relative to the foreign interest rate.
(f) an increase in domestic interest rates, all other factors equal, increases exports.
(g) a fiscal expansion, all other factors equal, tends to increase net exports.
(h) fiscal policy has a greater effect on output in an economy with fixed exchange rates than in an economy with flexible exchange rates.
(i) under a fixed exchange rate, the central bank must keep the domestic interest rate equal to the foreign interest rates.

answer; competency based pay;

answer///supply is elastic, and demand is inelastic;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711. 

answer: b. false

the staff is a set of five horizontal lines and four spaces which represent a different musical pitch. the lines and the spaces are numbered from bottom to top, the bottom line is the first line and the fifth line is the line on the top. the notes on the top of the staff (fifth line) have a higher pitch than a note at the bottom of the staff.