If the cost of a typical basket of goods in the U.S. is $100 and in China it is 500 yuan, and the nominal exchange rate is 10 yuan per dollar, what is the real exchange rate?
A. 1.
B. 2.
C. 3.
D. 4.
Answer: B
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Debt servicing refers to the repayment of principal on the debt.
Answer the following statement true (T) or false (F)
Real GDP is not a perfect measure of economic well-being because it excludes the value of all of the following except:
A. leisure time. B. nonmarket economic activity. C. goods and services available in the market economy. D. goods and services produced in the underground economy.
If the price per barrel of Crude decreases in the international market, then this event would most likely:
a. Increase aggregate demand in the United States b. Increase aggregate supply in the United States c. Decrease aggregate supply in the United States d. Decrease aggregate demand
A uniform-abatement policy is:
A. inefficient because it does not exploit the differences in abatement costs among firms. B. efficient because an equal amount of pollution is assigned to each firm. C. inefficient because it incurs relatively low compliance costs. D. efficient because it helps firms lower their production costs.