Which of the following is a shortcoming of the nominal, effective exchange rate?
a. The nominal, effective exchange rate does not take price differences into account.
b. The nominal, effective exchange rate as a measure is too narrow because it only shows changes in the value of one currency against one other currency.
c. The nominal, effective exchange rate is not easy to calculate because there are no data to determine the currency weights.
d. The nominal, effective exchange is not a meaningful measure because the differences in inflation are over-emphasized.
.A
You might also like to view...
Average costs curves later rise
a. Due to declining average fixed costs b. Due to rising average fixed costs c. Due to declining marginal costs d. Due to rising marginal costs
According to the Bureau of Labor Statistics' survey, which category represents the largest expense for the typical urban family?
a. Housing. b. Food and beverages. c. Transportation. d. Medical care.
Railroads, automobiles, television, computers, and genetic engineering are all examples of new industries that are believed by many economists to have triggered
a. innovation cycles b. all internal cycles c. all external cycles d. short-run cycles e. multiple-investment cycles
All of the following are shortcomings of GDP as a measure to human well-being except it:
a. Excludes non-market transactions. b. Excludes international transactions. c. Excludes black market and underground transactions. d. Excludes quality improvements that do not increase price or quantity sold. e. Excludes the value of leisure time.