Suppose the inflation rate in Canada is 1 percent and the inflation rate in Mexico is 3 percent. If the nominal exchange rate in terms of Mexican pesos per Canadian dollar falls by 4 percent, by how much will the real exchange rate (in terms of Mexican goods per Canadian good) change?
A. +6 percent
B. +2 percent
C. ?2 percent
D. ?6 percent
Answer: D
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When Starbucks extended its brand into coffee drinks and ice creams to reach customers who did not use its brand, it was using a(n) ________ strategy
A) geographical-expansion B) new-market segment C) market-penetration D) larger package size E) increased frequency
When appraising an automobile mechanic, Mac based his appraisal on the individual’s performance doing routine maintenance and repairs on cars. It appears that Mac is basing his appraisal on ________.
A. traits B. behaviors C. results D. incidents E. None of the above
The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80% of capacity. In millions, how large could sales have been if the company had operated at full capacity?
A. $312.5 B. $328.1 C. $344.5 D. $361.8 E. $379.8
In the year 2002, Timothy wanted to purchase a house. As he did not have sufficient funds, he decided to take a loan. Given his low credit score, it was highly unlikely that he would be able to repay the borrowed money. However, he was able to secure a loan despite his reduced ability to repay the loan. Timothy most likely applied for a _____.
A. subsidized loan B. subprime mortgage loan C. endowment mortgage loan D. concessional loan