How do we find the real exchange rate from the nominal exchange rate?
Real Exchange Rate = Nominal Exchange Rate x Domestic Price Index/Foreign Price Index
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A country with high economic growth:
A. will definitely experience high economic development. B. will never experience high economic development. C. not necessarily will experience high economic development. D. may not experience economic development without attention paid to policy actions.
Conservative economists believe that the crowding-out effect
A. is large because consumption demand is insensitive to interest rate changes. B. is not significant because the investment demand curve is interest insensitive. C. does not reduce the power of fiscal policy policies. D. greatly reduces the power of fiscal policy policies.
Economists once believed utility could be measured. This school of thought, known as utilitarianism, was developed by the English philosopher
A. Henri Leconte. B. Bernard Mandeville. C. Jeremy Bentham. D. John Lennon.
Discouraged workers are counted as part of the labor force.
Answer the following statement true (T) or false (F)