The key difference between the real exchange rate and the market exchange rate is that the market exchange rate controls for the level of prices
Indicate whether the statement is true or false
FALSE
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When we compare the records of the CPI and the PCE price index over time, the
A) two are very different in magnitude. B) PCE price index tends to exceed the CPI. C) CPI tends to exceed the PCE price index. D) two measures are identical. E) CPI tends to exceed the PCE price index when inflation is high, and the PCE price index tends to exceed the CPI when inflation is low.
Which type of graph is used to identify trends?
A) time-series B) scatter diagram C) cross-section D) None of the above answers is correct.
The figure above shows the demand and cost curves for a single-price monopoly. What level of output maximizes the firm's economic profit?
A) 0 units B) 20 units C) 30 units D) 50 units
Which of the following is a deficit item on the balance of payments?
A) exports of merchandise B) foreign tourist dollars spent domestically C) sales of gold to foreigners D) purchases of foreign assets