A bagel cost $1 in New York and 0.5 euros in Paris. If the real exchange rate is one-half of a New York bagel for a Parisian bagel, how many euros should you receive in exchange for one dollar?
A. 1.5
B. 0.1
C. 2
D. 0.25
Answer: D
Economics
You might also like to view...
In 1950, the largest category of state and local revenue (as a percentage of GDP) came from _____
a. individual income taxes b. sales and gross receipt taxes c. property taxes d. estate taxes
Economics
If the government wants to decrease the quantity consumed of alcohol by 20%, what percentage of tax would they have to levy on alcohol consumption?
a. 20% b. 30% c. 40% d. 50%
Economics
When positive spending shocks occur, transfer payments automatically fall
a. True b. False
Economics
Money is almost always used to quote prices. This illustrates the function of money as a
a. medium of exchange. b. store of value. c. unit of account. d. commodity value.
Economics