When the purchasing power of currencies is the same,
A) interest parity holds.
B) currencies cannot change in value
C) the real exchange rate is equal to the nominal exchange rate.
D) interest rates are the same.
C
You might also like to view...
In game theory, an example of a payoff could be:
A. being the first mover in a game. B. sharing information with a select few that others aren't privy to. C. monetary gains made by a player. D. giving an advantage to only one player.
Which of the following is an example of microeconomic analysis?
a. impact of taxation on national income b. rate of increase in the national debt c. relationship between inflation and interest rates set by the Federal Reserve d. none of the above
If P = 3Qs + 3 represents market supply for a competitive industry and market demand is given by Qd = 31 - 1/3 P, the equilibrium price is:
A. $48. B. $10. C. $20. D. $15.
In the textbook, there was a discussion of the average numbers of hours worked in the U.S. being around 34 hours per week. As you enter the work force, do you expect this number to increase or decrease?
What will be an ideal response?