If the price level in the United States is 110, the price level is 120 in Mexico, and the nominal exchange rate is 140 pesos per dollar, what is the real exchange rate from the U.S. perspective?
A) 94 B) 115 C) 128 D) 153
C
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When recessions are the result of slowing growth in potential output, the government's best policy is to:
A. decrease aggregate supply. B. promote saving and investment. C. reduce government spending. D. increase aggregate demand.
If the president begins making laws that citizens must abide by or be punished based on the opinion of the president, this is called the:
A. rule of man B. rule of one C. rule of force D. rule of law
Appendix: An optimal incentives contract can induce the revelation of true costs in a partnership by
a. imposing penalties when costs are overstated b. offering bonus payments when costs are verified c. renewing the reliance relationship d. linking revealed cost to the partner's foregone expected profits e. enlisting third-party enforcement
Because of the book, The Other America, Michael Harrington was important in beginning the
A. Peace Corps. B. “War on Poverty.” C. regulation of industry. D. Environmental Protection Agency.