A rise in the real exchange rate is called
A. a real depreciation.
B. a real devaluation.
C. a real bargain.
D. a real appreciation.
Answer: D
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One problem with using monetary policy to address "bubbles" in asset markets is that:
A. monetary policy is well-suited for addressing the problem of inappropriately high asset prices. B. reducing the real interest rate to deal with the bubble could lead to inflation. C. the Federal Reserve is not interested in stabilizing output. D. doing so presupposes that the Federal Reserve is better than financial-market professionals at identifying bubbles.
How does a government typically ensure that everyone contributes to public goods?
a. Collecting taxes b. Selling bonds c. Supporting private industry d. Charging usage fees
Why are people willing to pay more for a diamond than for a bottle of water?
What will be an ideal response?
One way of overcoming the problem of the commons is to make it private property
Indicate whether the statement is true or false