A particular brand of toothpaste costs 4 British pounds in London. The nominal exchange rate is .80 and the real exchange rate is about 1.16 . These numbers imply that the U.S. price of the same toothpaste is about
a. $5.79
b. $4.29
c. $3.70
d. $2.76
a
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In the market for domestic avocados, what would happen to the market clearing price and the equilibrium quantity if there was a drought in avocado growing areas?
A) The market clearing price would rise, and the equilibrium quantity would rise. B) The market clearing price would fall, and the equilibrium quantity would rise. C) The market clearing price would rise, and the equilibrium quantity would fall. D) The market clearing price would fall, and the equilibrium quantity would fall.
Macroeconomics studies the determination of
a. total output, total employment, the general price level, and the general level of interest rates b. total output and the general level of interest rates only c. total employment and the general level of prices only d. the interaction of individual economic actors in specific markets and industries e. the levels of employment and prices in specific markets and industries
Which of the following statements is true?
A) A savings deposit is not counted in the most basic, or narrow, definition of the money supply. B) M1 is sometimes referred to as transactions money. C) Money reduces the transaction costs of making exchanges. D) b and c E) a, b, and c
Exchange rates are affected by changes in:
A. The supply of a currency only. B. The demand for a currency only. C. Both the demand for and supply of a currency. D. The export of goods only.