Among the countries that use the euro, the real exchange rate ________ and the nominal exchange rate ________
A) is fixed; is fixed
B) is fixed; can change
C) can change; is fixed
D) can change; can change
C
You might also like to view...
"If the marginal tax rate is high enough, the expenditure multiplier can be negative." Is the previous statement correct or incorrect?
What will be an ideal response?
The firm's demand for labor is derived directly from ________
A) the wage rate B) the supply of labor C) labor's cost D) labor's value of marginal product
A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket
A) equaled $160 in 1983. B) rose 160% from the cost of the market basket in the base year. C) rose 60% from the cost of the market basket in the base year. D) equaled $160 in 1996.
The Baumol-Tobin analysis suggests that a decrease in the brokerage fee for buying and selling bonds will cause the demand for money to ________ and the demand for bonds to ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase