Assume that the Danish krone [DKK] price of one British pound is DKK 10.5 . If it costs 45 pounds per day to rent a car in London and DKK 480.5 to do so in Copenhagen, which of the following is true?
a. The cost of renting a car is the same in both cities.
b. The cost of renting a car is DKK 8 less in London.
c. The cost of renting a car is DKK 45.76 less in London.
d. The cost of renting a car is DKK 10.67 more in Copenhagen.
e. The cost of renting a car is DKK 4.28 less in London.
b
You might also like to view...
Economists of the rational expectations school: a. have no confidence in the ability of workers and firms to observe and react to economic events
b. believe workers and firms behave the same regardless of what the Fed does. c. have great faith in the ability of monetary policy makers to maintain a full employment economy with stable prices. d. believe that effective monetary policy can shift the potential level of output to the right. e. believe workers and firms make decisions based on what they think monetary policy will be in the future.
Which of the following happens in the market for loanable funds when there is capital flight?
a. the demand curve shifts right. b. the demand curve shifts left. c. the supply curve shifts right. d. the supply curve shifts left.
Which of the following is not included in aggregate demand?
a. purchases of stock and bonds b. purchases of services such as visits to the doctor c. purchases of capital goods such as equipment in a factory d. purchases by foreigners of consumer goods produced in the United States
How can the economy of China be characterized?
a. free market b. centrally planned c. mixed, but on the side of centrally planned d. mixed, but on the side of free market