A rise in the real exchange rate represents an increase in the purchasing power of the home currency
Indicate whether the statement is true or false
FALSE
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A tax levied on the purchase of a specific good or service is
A. a purchase tax. B. a value tax. C. an excise tax. D. a consumption tax.
According to your text, one reason for flat or falling achievement scores even in the face of substantially higher education subsidies may be that
A) the additional funds are being siphoned off by dishonest school board members. B) some of the funds are going to social services rather than to enhance learning activities. C) students are so unmotivated that no amount of spending will ever improve scores. D) most parents do not support the schools or their children's educational activities.
Given the U.S. price level P, the foreign country price level P*, and the nominal exchange rate E expressed in foreign currency per U.S. dollar, the real exchange rate RER is given by
A) RER = E × (P/P*). B) RER = E × (P*/P). C) RER = (P/P*) / E. D) RER = P / (E/P*).
When buying a car from a commission salesman you improve your bargaining position by
a. shopping when the new model year cars have just arrived b. shopping when the showroom is full of customers c. shopping when the car lot has many cars left unsold d. shopping toward the beginning of the month