The price of gold is $300 per ounce in New York and 2,550 pesos per ounce in Mexico City. If the law of one price holds for gold, the nominal exchange rate is ________ pesos per U.S. dollar.
A. 85.5
B. 8.5
C. 0.118
D. 1.18
Answer: B
You might also like to view...
Fixed costs are associated with:
A. the long run only. B. both the short run and the long run. C. highly adjustable inputs such as labor. D. the short run only.
Equity is synonymous with fairness.
Answer the following statement true (T) or false (F)
If consumption equals $1,000 when income is $1,000 and increases to $1,900 when income increases to $2,000, then the marginal propensity to consume is
A) 0.50. B) 0.90. C) 1.00. D) 2.00.
Your roommate tells you she's going to join the gym next week. A week and a half goes by and you ask her how the gym is going, and she tells you she's going to wait until the following week. Your roommate's preferences are:
A. better today than tomorrow. B. time inconsistent. C. mistakes. D. considered bad choices.