By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from $1.40/£ to $1.60/£, the U.S. tradable basket from $2,100 to $2,200 and the British tradable basket from £1,500 to £1,600?
a. The real exchange rate rises by 16.35%.
b. The real exchange rate falls by 3.1%
c. The real exchange rate rises by 3.1%
d. The real exchange rate falls by 10.8%
e. The real exchange rate falls by 12.5%
.A
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The marginal revenue of a monopolistically competitive firm
A) will equal average revenue. B) cannot be negative because the price the firm charges will always be greater than zero. C) can be negative if the firm charges a high price. D) can be negative if the firm charges a low price.
Describe the difference between the Economic Value Added (EVA) and the Market Value Added (MVA) approach to determining stockholder wealth
What will be an ideal response?
Suppose you put $1,000 aside for a vacation in Mexico. On your flight to Cancun, the passenger seated next to you says: "Did you hear the good news? We can do and buy more on our vaction now.". You ponder the comment and say to yourself:
a. "I bet there's a new tariff on American goods.". b. "I bet there's a new tariff on Mexican goods.". c. "Perhaps the exchange rate, dollars per peso, increased.". d. "Perhaps the exchange rate, pesos per dollar, increased.". e. "Perhaps the exchange rate, pesos per dollar, decreased.".
Use the following graph to answer the next question.
If the industry were perfectly competitive, the quantity of output produced would be ________.
A. 195 B. 160 C. 90 D. a level that is not labeled in the graph