The relative price of a country's goods and services in terms of foreign goods and services is the real exchange rate
Indicate whether the statement is true or false
TRUE
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A key reason why some countries are growing very slowly is
A) they lack economic freedom. B) there is too much competition within their economies. C) they lack a democratic government. D) they are too poor, so there is no saving. E) their inflation rate is too high.
Prices and wages are considered "sticky" if
A) their rates of increase and decrease are identical. B) as prices increase, wages increase by the same percentage. C) their rates of change are directly connected to the rate of change in unemployment. D) they do not fully adjust to changes in demand and supply.
Under rate-of-return regulation, the price is set so that
A) price equals the marginal cost of production. B) the firm earns a positive economic profit. C) the firm earns a monopoly profit. D) the firm earns a normal rate of return on investment.
If it takes more dollars to acquire one unit of a foreign currency,
A) the quantity of U.S. good that the foreign country will by will decrease B) the foreign currency has depreciated. C) the dollar has depreciated. D) the dollar has appreciated.