Suppose the number of pesos per U.S. dollar is 3 . The aggregate price level in Mexico is 90, and the real exchange rate between the two countries is 2 . The aggregate price level in the United States is _____
a. 60
b. 45
c. 50
d. 55
a
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Assume the price of good X increases. As a result, your real income decreases and you decrease the quantity of good X purchased each month. This is an example of the:
a. income effect. b. consumer price effect. c. revenue effect. d. substitution effect. e. all of these.
Why are transfer payments included in personal income but not in national income? Are transfer payments included in GDP?
Positive economics
A. always gives an optimistic spin to economic news. B. was not used by nineteenth century economists. C. is concerned with the economic policies that should be implemented. D. is objective.
There is an increase in the demand for cookies when the price of milk falls. Other things constant, we can conclude that cookies and milk are
A. independent goods. B. substitute goods. C. inferior goods. D. complementary goods.