According to purchasing-power parity, if prices in the United States increase by a larger percentage than prices in the United Kingdom, then the
a. real exchange rate rises.
b. nominal exchange rate rises.
c. real exchange rate falls.
d. nominal exchange rate falls.
d
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In the figure above, curve C is the ________ curve
A) average fixed cost B) average variable cost C) average total cost D) marginal cost
When the aggregate demand curve and the short-run aggregate supply curve intersect
A) the long-run aggregate supply curve must also intersect at the same point. B) structural and frictional unemployment equal zero. C) inflation must be increasing. D) the economy is in short-run macroeconomic equilibrium.
In understanding the differences of the impact of globalization on inflation in various nations it is important to consider
A) the degree of development in a nation. B) the structure of income taxes in the country. C) the degree of central bank independence. D) all of the above.
In a constant cost industry, the only long-run effect of an increase in demand is ______.
a. an increase in industry output b. an increase of input prices c. a decrease in the number of suppliers d. an increase in the long-run equilibrium price