Assume that Japan and the United States are engaged in a system of flexible exchange rates. One US dollar will purchase how many Japanese Yen?
Ans: 125
$.8= 100 yen
.8/.8= 100/.8
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A time-series graph reveals whether there is a ________ which represents ________
A) trend in a variable; a general tendency for the variable to rise or fall B) relationship between two variables; a cross-section graph C) trend in a variable; unrelated variables D) relationship between two variables; a trend in a variable
Suppose that the Fed implements expansionary monetary policy that raises aggregate demand, but individuals incorrectly anticipate the policy measure (bias downward). According to new classical theory, in the short run the price level would ____________ and Real GDP would ______________. In the long run, new classical theory would predict that the price level would ___________compared to its
original long-run equilibrium level and that Real GDP would ____________. A) rise; decline; rise; remain unchanged B) rise; rise; rise; remain unchanged C) rise; decline; remain unchanged; rise D) fall; rise; remain unchanged; rise
When output increases by 1%, the number of jobs ________ in the short run. One of the reasons why this is true is that a firm is likely to meet some of the increase in output by increasing the number of hours worked per job.
A. tends to fall by 1% B. tends to fall by more than 1% C. tends to rise by more than 1% D. does not tend to rise by 1%
In order to prove that Motrin and Ibuprofen are substitutes, one should measure the ________ and get a ________
A) price elasticity of demand; number greater than 1 (in absolute value) B) cross-price elasticity; positive number C) cross-price elasticity; negative number D) price elasticity of demand; number less than 1 (in absolute value)