Which of the following statements is true?
A) Defending an overvalued currency is easier than defending an undervalued currency.
B) Defending an undervalued currency is easier in the short run than in the long run.
C) The nominal exchange rate is the ratio of the same basket of goods in two countries.
D) The real exchange rate is calculated by dividing the nominal exchange rate by the inflation rate.
B
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Explain how the short-run and long-run Phillips curves are related
What will be an ideal response?
Elasticity of demand equals the ratio of the percentage change in the price of a good to the percentage change in the quantity demanded.
Answer the following statement true (T) or false (F)
International participants
A. Participate only in American product markets. B. Participate only in American factor markets. C. Take no part in American markets. D. Participate in both American factor markets and American product markets.
If the marginal benefits are greater than the marginal cost of an activity, then society is overallocating resources to this activity.
Answer the following statement true (T) or false (F)