If purchasing power parity holds and a basket of goods costs $300 in the U.S. and the same basket costs 450 manats in Azerbiajan, then what is the nominal exchange rate?
a. about .67 manats per dollar
b. 1 manat per dollar
c. 1.5 manats per dollar
d. about 1.67 manats per dollar
c
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Which of the following will cause net exports to rise?
a. A depreciation of the domestic currency b. A fall in foreign income c. Higher foreign tariffs on domestic goods d. Inflation in domestic economy e. A depreciation of the foreign currency
Transfer payments represent income that is not earned but received by individuals
a. True b. False Indicate whether the statement is true or false
If a construction boom leads to an increase in the price of lumber, how will the higher lumber prices influence the wood furniture market?
a. The demand for wood furniture will decline, and furniture prices will fall. b. There will be a shortage of wood furniture. c. There will be a surplus of wood furniture. d. The supply of wood furniture will decline, and furniture prices will increase.
If the total population is 175 million, the labor force is 100 million, and 89 million workers are employed, then the unemployment rate is 11 percent.
Answer the following statement true (T) or false (F)