Differences in inflation rates between two countries can explain:
A. short-run changes in the exchange rate but not long-run changes.
B. changes in the real exchange rate over the long run, but not changes in the nominal exchange rate.
C. changes in the exchange rate in both the short run and the long run.
D. long-run changes in the exchange rate but not short-run changes.
Answer: D
You might also like to view...
The Keynesian short-run aggregate supply (SRAS) curve
A) shows that real Gross Domestic Product (GDP) will increase only if the price level increases. B) is horizontal. C) assumes a full-employment level of real Gross Domestic Product (GDP). D) does not reflect any changes in nominal Gross Domestic Product (GDP).
When the dollar appreciates against the euro, the euro has:
A. depreciated against the dollar. B. become more valuable relative to all other currencies. C. become less valuable relative to all other currencies. D. appreciated against the dollar.
Assume the total product of two workers is 80 and the total product of three workers is 90. The average product of three workers is ________, and the marginal product of the third worker is ________.
A. 160; 270 B. 30; 10 C. 10; 13.33 D. 10; 45
Refer to Game Matrix I. The only Nash equilibrium for this game is in
a. the upper left-hand corner.
b. the upper right-hand corner.
c. the lower left-hand corner.
d. the lower right-hand corner.