Chance Co., the parent of a US-based MNC, uses fundamental forecasting to estimate future values of exchange rates. Suppose that Chance Co. believes that movements in the value of the British (as measured by percentage change from the previous quarter), ebpebp , pound are dictated entirely by the inflation rate differential between the pound and the U. S. dollar in the previous quarter Infi . That is, the firm uses the following regression equation: ebp = bo + b1 + Inf1 + μt

Where μt is the error term and bo is a constant.

Suppose that Chance Co. estimates bo to be 0.0 and b1 to be 0.6.

According to these estimates, which of the following is associated with a one unit increase in Inft?

a. A decrease in the value Of the pound by 0.6 percent
b. A decrease in the value Of the pound by 0.4 percent
c. An increase in the value Of the pound by 0.4 percent
d. An increase in the value of the pound by 0.6 percent

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Communication comes in various forms. which of the following is considered an old form of communication? a) e-mail b) letter c) skype d) texting

Labor unions have used which of the following to win passage of favorable laws such as shorter work weeks and the minimum wage? a. strikes b. collective bargaining c. lobbying d. lockouts