Which of the following best defines the real exchange rate?
A) the price of foreign bonds in terms of domestic bonds
B) the price of foreign currency in terms of domestic currency
C) the price of domestic goods in terms of foreign goods
D) the price of domestic currency in terms of foreign currency
E) none of the above
C
You might also like to view...
Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. Which of the policies below could lead to these shifts?
i. An increase in government expenditure ii. A tax cut iii. A decrease in government expenditure iv. A tax hike A) iv only B) i and ii C) i and iv D) i only E) iii and iv
In one northern town, the snowmobilers enjoy snow while non-snowmobilers hate it. When the town gets two feet of fresh snow, which group is made wealthier?
A) Non-snowmobilers B) Snowmobilers C) Everybody D) Nobody
Only one out of five families that fall into poverty in one year are out of poverty in the following year
Indicate whether the statement is true or false
Government spending as a percent of national income
A) peaked during the Reagan administration. B) peaked during World War II. C) has been steadily climbing since 1850. D) has been almost constant this century.