The country of Solidia is politically very stable and has a long tradition of respecting property rights. If several other countries suddenly became politically unstable, we would expect Solidia's
a. real interest rate to rise.
b. real exchange rate to rise.
c. net exports to rise.
d. None of the above is likely.
b
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Exchange rates that are allowed to fluctuate in the open market in response to changes in supply and demand are known as
A) fixed exchange rates. B) gold exchange rates. C) flexible exchange rates. D) IMF exchange rates.
Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values {$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market, what is the equilibrium price in this market?
a. 7 b. 8 c. 9 d. 10
Which of the following is higher in Mali than in the United Kingdom?
a. Modern sanitation access b. Income per person c. Child mortality d. Percent of the population enrolled in college
Explain the differences among the frictional, structural, and cyclical forms of unemployment.
What will be an ideal response?