If the real exchange rate for the dollar is above the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is
a. greater than the quantity demanded and the dollar will appreciate.
b. greater than the quantity demanded and the dollar will depreciate.
c. less than the quantity demanded and the dollar will appreciate.
d. less than the quantity demanded and the dollar will depreciate.
b
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The reporter on one broadcast network says 2011 GDP increased to an all-time high. Commenting on the same figure, a second reporter says GDP in 2011 was less than in 2010 . Which of the following explanations is consistent with the statements of both reporters?
a. The first reporter was referring to real GDP, and the second was referring to nominal GDP. b. The first reporter was referring to nominal GDP, and the second was referring to real GDP. c. The first reporter was referring to GDP as measured by the expenditure approach, and the second was referring to GDP as measured by the income cost approach. d. The first reporter was referring to GDP as measured by the income cost approach, and the second was referring to GDP as measured by the expenditure approach.
If the rate of inflation is 6 percent, the prime rate of interest is 9 percent, and the unemployment rate is 6 percent, how much is the misery index?
What will be an ideal response?
You use $2,000 of your own money to start a dog-sitting service. During the first year you earn a 10% return on your investment. If the current interest rate is 7%, you earn an economic profit of
A. $60. B. $140. C. $200. D. $340.
The difference between the current account balance and net exports is
A. the capital account. B. income receipts from foreign assets. C. net unilateral transfers plus net factor payments from abroad. D. adjustments in net foreign assets.