Suppose that Cambodia becomes the next popular tourist destination. You notice that hotels, restaurants, and other services cost much less there than in the United States. From the perspective of the U.S. dollar, what would be the real exchange rate of the Cambodian riel?
a) The real exchange rate would be 0.
b) The real exchange rate would be 1.
c) The real exchange rate would be greater than 1.
d) The real exchange rate would be less than 1.
Ans: c) The real exchange rate would be greater than 1.
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a. greater than b. less than c. about equal to d. not comparable to
Which is the most accurate statement?
A. Doctors' incomes are high because the demand for their services is high relative to the supply. B. Doctors' incomes are high because the supply of their services is high relative to the demand. C. Doctors' incomes are low because the demand for their services is high relative to the supply. D. Doctors' incomes are low because the supply of their services is high relative to the demand.
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A. a net outflow of money from the United States. B. a net inflow of money into the United States. C. no net outflow or net inflow.
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A. intermediate goods. B. capital goods. C. durable goods. D. value added goods.