If the exchange rate is 1.25 New Zealand dollars per U.S dollar, the price of apples is $2 a pound in the U.S. and 1 New Zealand dollar per pound in New Zealand, what is the real exchange rate?
a. 2.50
b. 2
c. 1.25
d. .75
a
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In the U.S., one example of a cartel that is legal is
A) the railroads, including Union Pacific. B) the oil industry. C) Major League Baseball. D) None, all cartels are prohibited.
Monopolistic competition is characterized by: a. homogeneous products
b. barriers to entry. c. firms earning economic profits in the long run. d. differentiated products.
An MP3 player in Singapore costs 200 Singaporean dollars. In the U.S. it costs 100 US dollars. What is the nominal exchange rate if purchasing-power parity holds?
a. 2.0 b. 1.0 c. .50 d. None of the above is correct.
Jim has the following assets and liabilities:Credit card balance$2,000Cash$500Government bonds$2,000Checking$750Car loan balance$5,000Car$15,000 Which of the following actions would increase Jim's money demand by $200?
A. Jim pays $200 cash for a new lamp. B. Jim gets a $200 cash advance on his credit card and puts the proceeds in his checking account. C. Jim writes a check for $200 to pay down his credit card balance. D. Jim writes a check for $200 to pay down her car loan balance.