Use a truth table to test the validity of the argument.  You…

Use a truth table to test the validity of the argument.  Your truth table must be scanned and uploaded to Canvas Assignments within 5 minutes of submitting your test  AND must justify/support your answer. NO TABLE  =  NO CREDIT p  ∨ q         q        ∴ p

Suppose that the ROI in the USA was 6% and in Germany it was…

Suppose that the ROI in the USA was 6% and in Germany it was 3.5% with a 2.5% expected appreciation of the Euro (used in Germany) over the life of the investment. Then, the German government announces an increase in interest rates which boost ROI to 5% plus the 2.5% expected appreciation in the Euro. Now, suppose that 1.5% of this currency appreciation happens IMMEDIATELY and therefore investors do not benefit from it.  From this we know that:     

Suppose the following table shows marginal product for worke…

Suppose the following table shows marginal product for workers at the ABC Inc. company which produces widgets. Assume that widgets now sell for $7 each.  worker      MP Bob  12 Ralph 11 Susan 14 From this we can see that it would be rational for a firm to pay Ralph $91.  

Suppose that the ROI in the USA is 4.3% and in Mexico it is…

Suppose that the ROI in the USA is 4.3% and in Mexico it is 3.1%. The ROI from currency appreciation expected for the Mexican Peso over the investment period is 1.4%. None of this currency appreciation is expected to happen “upfront.” From this we can see that interest rate parity will be established.