The nominal exchange rate:
A. is a synonymous term for the swap rate.
B. is the amount of one country's goods that could be obtained with a basket of goods of another country.
C. is the rate that one can exchange the currency of one country for the currency of another country.
D. is always expressed as units of a foreign currency per U.S. dollar.
Answer: C
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Consumer surplus can be defined as the difference between:
a) the demand curve and the price of the good. b) the supply curve and the price of the good. c) the supply curve and the demand curve. d) the price charged by sellers and the price paid by buyers.
A rent ceiling set above the equilibrium rent
A) decreases the quantity demanded but not the quantity supplied. B) decreases the quantity supplied but not the quantity demanded. C) decreases both the quantity demanded and the quantity supplied. D) has no effect on the market outcome.
The current account balance plus the financial account balance
A) equals the trade balance. B) equals the net outflow of currency from the domestic economy. C) will be negative during economic expansions and positive during economic contractions. D) equals zero.
The size of the multiplier depends on
A) the level of autonomous investment. B) the marginal propensity to consume. C) the level of net exports. D) the level of autonomous consumption.