Which of the following equations correctly represents nominal exchange rate?
A) Nominal exchange rate = units of foreign currency/1 unit of domestic currency
B) Nominal exchange rate = 1 unit of domestic currency/100 units of foreign currency
C) Nominal exchange rate = 100 units of domestic currency/1 unit of foreign currency
D) Nominal exchange rate = units of foreign currency/100 unit of domestic currency
A
You might also like to view...
Which of the following is true about the distribution of income in the U.S. in the last three decades?
A) For much of this period real wages paid to college graduates have risen significantly. B) Real wages paid to blue-collar workers have grown only slightly. C) There has been a shift in the distribution in income across various segments of the economy, with the real earnings of the richest in America rising to record levels. D) All of the above are true.
All else constant, an increase in productivity has the effect of causing:
A) the marginal product of labor to increase and no effect on the average product of labor. B) the average product of labor to increase and no effect on the marginal product of labor. C) the marginal product of labor to increase and the average product of labor to decrease. D) both the marginal and average product of labor to increase.
A firm invests in a new machine that costs $5,000 a year but is expected to produce an increase in total revenue of $5,200 a year. The current real rate of interest is 7%. The firm should
A. undertake the investment, because the expected rate of return of 10% is greater than the real rate of interest. B. not undertake the investment, because the expected rate of return of 4% is less than the real rate of interest. C. not undertake the investment, because the expected rate of return of 6% is less than the real rate of interest. D. undertake the investment, because the expected rate of return of 8% is greater than the real rate of interest.
________ protect property rights.
A. Injunctions and liability rules B. Taxes and subsidies C. Bargaining and negotiation D. Rivalry and excludability