According to purchasing-power parity, if the price of a basket of goods in the U.S. rose from $2,000 to $2,104 and the price of the same basket of goods rose from 800 units to 832 units of some other country's currency, then the
a. nominal exchange rate would appreciate.
b. nominal exchange rate would depreciate.
c. real exchange rate would appreciate.
d. real exchange rate would depreciate.
b
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Firms that can price discriminate between customers do so to ________
A) increase consumer surplus B) increase employment C) increase their profit D) decrease the quantity they produce
The price elasticity of demand is defined as
a. the absolute change in price divided by the absolute change in quantity demanded. b. the absolute change in quantity demanded divided by the absolute change in price. c. the percentage change in quantity demanded divided by the percentage change in price. d. the percentage change in price divided by the percentage change in quantity demanded.
Behavioral economists believe that the human brain is generally:
A. efficient and accurate. B. efficient but prone to errors. C. inefficient but accurate. D. inefficient and prone to errors.
The slope of a straight line:
A. is constant. B. is negative. C. is zero. D. changes along the curve.