The nominal exchange rate is 30 Thai bhat for one U.S. dollar. A sub sandwich combo deal in the U.S. costs $6 dollars in the U.S. and 120 bhat in Thailand. The real exchange rate is
a. 3/8
b. 2/3
c. 3/2
d. 8/3
c
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Holding constant risk and the real returns available abroad, lower domestic real interest rates ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. decrease; increase; decrease B. increase; increase; decrease C. increase; decrease; increase D. increase; increase; increase
If the real interest rate is 7.5% and the rate of inflation is 3%, what is the nominal interest rate?
A. 4.50% B. 4.57% C. 10.50% D. 10.73%
Which of the following is considered to be an investment in the national income accounts?
A. Increases in inventories of unsold goods B. Purchases of Treasury bills C. Money deposited in a bank D. Purchases of land
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. Suppose consumers' income is $50,000 and the price of satellite TV service is $90. At what price would the demand for cable TV services be equal to 55,000 households?
A. $67 B. $48 C. $12 D. There is not enough information to answer the question.