Find the real exchange rate for the following case: Assume that the representative basket of European goods and services costs 40 euros and the representative U.S
basket costs $50, and the dollar/euro exchange rate is $0.90 per euro, then the price of the European basket in terms of U.S. basket is ________.
[(0.9 $/euro) (40 euro per a European basket)]/[(50 $/U.S. basket)]
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An increase in the inflation rate increases employment only if the increase in inflation is unexpected
Indicate whether the statement is true or false
What is the general format of the consumption function? Explain what each term means and use the consumption function to explain the three different ways that consumption can increase
Refer to the tables. If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be:
Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina:
A. 10 units of capital goods.
B. 1 / 4 of a unit of capital goods.
C. 8 units of capital goods.
D. 1 / 8 of a unit of capital goods.
Which of the following is the largest expenditure item of state governments?
A. Education B. Highways C. Public welfare D. Health and hospitals