All of the following statements are true about the real exchange rate, = , EXCEPT
A) a greater change in P (domestic price) compared to a change in P (foreign price) necessitates a rise in the nominal rate, Rn, to keep the real rate unchanged.
B) a pegged exchange rate system requires tight control of the money supply.
C) there is a one-to-one correspondence between the real and nominal exchange rates.
D) an expansionary monetary policy raises the real exchange rate.
A
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According to Adam Smith, a well-governed society's wealth is positively related to
A) the division of demand. B) the division of labor. C) the degree to which society can eliminate scarcity. D) the degree to which society can encourage and promote greed.
If the demand curve for a good is a downward sloping straight line, the demand for the good will be more price elastic the higher is the
A) price of the good. B) price of complements. C) income of consumers. D) income elasticity of demand for that good.
If R2 is less than 1
A) the regression analysis is incorrect. B) the observation data is suspect. C) some observations do not lie on the regression line. D) the probability of having the correct fit is very low.
If View Your World, a high-end window manufacturer, sells its glass door division, this is an example of ________.
A) divestiture B) backward integration C) outsourcing D) forward integration