If purchasing-power parity holds, then the value of the
a. real exchange rate is equal to one.
b. nominal exchange rate is equal to one.
c. real exchange rate is equal to the nominal exchange rate.
d. real exchange rate is equal to the difference in inflation rates between the two countries.
a
You might also like to view...
Crowding out refers to a decrease in government purchases as a result of an increase in private expenditures
Indicate whether the statement is true or false
A leftward shift of the money supply ________
A) may come about from an increase in the quantity of money supplied by the Federal Reserve B) may come about from an increase in the price level C) leads to a decrease in interest rates ceteris paribus D) all of the above E) none of the above
Marginal utility (MU) equals:
a. P/Q. b. Q/TU. c. PQ/TU. d. TU/P. e. TU/Q.
What do foregone interest on money invested in a firm, wages paid to production workers, interest paid on bank loans, and the purchase of parts for assembly have in common? a. All are explicit costs
b. All are implicit costs. c. All are opportunity costs. d. None are opportunity costs.