For a given domestic and foreign price level, a decrease in the nominal exchange rate ________ the real exchange rate.
A. may either increase or decrease
B. decreases
C. offsets any change in
D. increases
Answer: B
You might also like to view...
Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will
A) increase. B) remain constant. C) decrease. D) not change in a way that can be predicted.
If the Federal Reserve purchases $1 million in government securities in the open market, with a 25 percent required reserve ratio on deposits, the maximum increase in deposits would be
a. $4 million. b. $10 million. c. $25 million. d. -$4 million. e. none of the above
________ efficiency occurs when the firm produces a rate of output at which marginal cost equals the marginal benefit that consumers derive from the good. ________ efficiency occurs when the firm produces at the minimum point on its long-run average-cost curve
a. Social; allocative b. Productive; accounting c. Allocative; productive d. Economic; allocative
A Lorenz curve is a graph that shows:
A. The equity versus efficiency trade-off B. How many households are living in poverty C. The tradeoff between inflation and unemployment D. The distribution of household income