Suppose the real exchange rate is 5/4 of a Canadian textbook per U.S. textbook , a U.S. textbook costs $150, and a Canadian one costs 120 Canadian dollars. To the nearest penny, what is the nominal exchange rate?
a. .64 Canadian dollars per U.S. dollar
b. 1 Canadian dollar per U.S. dollar
c. 1.56 Canadian dollars per U.S. dollar
d. None of the above is correct.
b
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According to this Application, Janet L. Yellen, the Vice-Chair of the Board of Governors, believes that ________ in worldwide demand and ________ of supply were the primary cause of the worldwide increase in commodity prices
A) decreases; shortages B) increases; surpluses C) increases; shortages D) decreases; surpluses
Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?
A) half a year B) approximately 10 years C) 28.6 years D) 35 years
In the long run, a profit-maximizing monopolist
a. earns zero economic profit. b. produces the same amount as a perfectly competitive industry. c. receives a higher price for his output than a perfectly competitive firm. d. produces at the output level that minimizes his long-run average total cost.
If the nominal interest rate increases:
A. the velocity of money should decrease. B. the cost of holding money increases and the velocity of money should decrease. C. the cost of holding money decreases. D. the cost of holding money increases.