Assume the exchange rate is 1 U.S. dollar equals 1.10 Canadian dollars. If purchasing power parity is correct, a DVD that has a price of $10 in Rochester, New York, in Canada has a price of ________ Canadian dollars
A) 10.00 B) 10.10 C) 11.00 D) 11.11 E) 9.09
C
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Suppose your $50,000 certificate of deposit matures and you transfer the funds to your checking account. This causes
A) M1 to decrease by $50,000 and M2 to increase by $50,000. B) M1 to increase by $50,000 and M2 to remain the same. C) both M1 and M2 to increase by $50,000. D) no change to either M1 or M2.
If the coupon-rate of a particular bond increases:
a. the supply of the bond increases. b. the price of the bond declines. c. the demand for the bond declines. d. the supply of the bond decreases. e. the demand for the bond increases.
In the circular flow diagram, households sell _________ to business firms.
a. information b. products c. services d. labor
Refer to the above table. The price of a hamburger is $2, the price of a movie is $5, and the consumer's income is $29. What is the marginal utility per last dollar spent on movies equal to if the consumer is at an optimum?
A. 20 B. 10 C. 50 D. 40