The real exchange rate is the exchange rate that:
A. eliminates changes in exchange rates due to differences in inflation.
B. would exist if there were no government intervention in the market.
C. a person actually pays after the mark-up charged by the bank is included.
D. would exist if there were no currency speculation.
Answer: A
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a. its MAC
Producers' total revenue will decrease if
A) income increases and the good is a normal good. B) the price rises and demand is elastic. C) the price rises and demand is inelastic. D) income falls and the good is an inferior good.
The ratio of bank capital to bank assets is known as the bank's
A) leverage ratio. B) net interest margin. C) return on equity. D) return on capital.
The more firms there are in a market, the:
A. larger will be the price effect of one firm's output decision. B. smaller will be the price effect of one firm's output decision. C. more collusion is likely to happen. D. None of these statements is true.