If the real exchange rate rises 4%, domestic inflation is 2%, and foreign inflation is 0%, what is the percent change in the nominal exchange rate?
A. 0%
B. 6%
C. 4%
D. 2%
Answer: D
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According to real business cycle theory,
A. monetary factors affecting aggregate demand cause macroeconomic instability. B. when real wages fall during recessions, "real" unemployment rates rise. C. recessions result from declines in long-run aggregate supply, rather than decreases in aggregate demand. D. the net long-run costs of business fluctuations are severe.
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and must decide how to pay them. To align incentives, it should to pay the consultants
a. Per store opened b. A percentage of the profit earned per new store c. A fixed contract amount d. All of the above
When you receive interest on your bank account, that income is part of the economy's __________ income
Fill in the blank(s) with correct word
The government buys new weapons systems. The manufacturers of weapons pay their employees. The employees spend this money on goods and services. The firms from which the employees buy the goods and services pay their employees. This sequence of events illustrates
a. the accelerator effect. b. the multiplier effect. c. the chain effect. d. the bandwagon effect.