In equilibrium, all traded foods sell at the same price internationally. If the same goods are expressed in their home prices, then the ratio of prices is equal to
A) 1
B) the exchange rate between the two currencies
C) the real exchange rate between the two currencies
D) none of the above
Ans: B) the exchange rate between the two currencies
Economics
You might also like to view...
A rightward shift in the aggregate demand curve is most likely to result in
a. inflation. b. recession. c. economic growth. d. an increase in real GDP.
Economics
If a good causes a positive externality, regulation might take the form of a
A. subsidy. B. ban on the product. C. tax. D. price floor.
Economics
Work by Doug Diamond and Philip Dybvig in the 1980s had clarified the nature of
A) unemployment. B) bank runs. C) inflation. D) growth.
Economics
Why study the economics of agriculture in the United States? Give five reasons
What will be an ideal response?
Economics