A currency's spot exchange rate against every other individual currency is known as a ________ exchange rate, and the exchange rate which shows how a currency is changing relative to a group of other countries' currencies is known as a ________
exchange rate. A) nominal; real
B) unilateral; bilateral
C) nominal; parity
D) bilateral; multilateral
D
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Which of the following factors does NOT shift the demand curve for money?
A) changes in the interest rate B) changes in real GDP C) changes in the price level in the economy D) changes in real income
In the short-run, a tax increase
A) shifts the DD curve to the right, increases output and appreciates the currency. B) shifts the AA curve to the left, increases output and depreciates the currency. C) shifts the AA curve to the left, decreases output and depreciates the currency. D) shifts the AA curve to the left, increases output and appreciates the currency. E) shifts the DD curve to the left, decreases output and depreciates the currency.
Consider a firm with the following cost information: ATC = $15, AVC = $12, and MC = $14 . If we know that this firm has decided to produce Q = 20 by following the rule to maximize profits or minimize losses, then the price of the output is:
a. $12. b. $14. c. $15. d. $20.
On the Internet you find the following offers for opening an online account. Which of them is the best offer if you have $2,000 to save for two years?
a. an interest rate of 5 percent, with the bank charging you a $15 processing fee at the time you open your account b. an interest rate of 3.5 percent, with the bank giving you a $35 bonus to open your account c. an interest rate of 4 percent, with the bank giving you a $20 bonus at the time you open your account d. an interest rate of 4.5 percent, with no processing fee and no bonus