When a country's real exchange rate depreciates,
A) its nominal exchange rate must have appreciated.
B) its nominal exchange rate must also have depreciated.
C) it can trade its goods for fewer units of foreign goods.
D) it can trade its goods for more units of foreign goods.
C
You might also like to view...
It is difficult for competent authorities to agree on the best definition of the money stock because money is composed primarily of the liquid liabilities of financial institutions
A) and liquidity implies the absence of certainty. B) of which there are many different kinds whose relative liquidity is continually changing. C) on which we simply have no reliable data. D) whose solvency is highly questionable.
Which of the following was NOT a result of the passage of the Gramm-Leach-Bliley Act?
A) It repealed the Glass-Steagall Act. B) It allowed commercial banks to participate in securities, insurance, and real estate activities. C) It authorized new financial holding companies which permitted securities and investment firms to own commercial banks. D) It increased the capital requirements for commercial banks.
Rawls's thought experiment of the "original position" behind the "veil of ignorance" is meant to draw attention to the fact that
a. the rich have so much money that they don't know how to spend it all. b. outcomes are efficient only if everyone begins with equal opportunity. c. most of the poor do not know how to find better jobs and escape poverty. d. the station of life each of us was born into is largely a matter of luck.
Deadweight loss:
A. creates efficiency in markets. B. always occurs in markets. C. is the loss in producer surplus from a price increase D. is the difference between the total surplus occurring in a market and the maximum total surplus achievable.