If the real exchange rate between the U.S. and Japan is 1, the nominal exchange rate is 100 yen per U.S. dollar and the price of chicken in the U.S. is $2.50 per pound, what is the price of chicken in Japan?
a. 400 yen per pound
b. 250 yen per pound
c. 100 yen per pound
d. 40 yen per pound
b
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(a) Fill in Table. (b) Is the firm a perfect or an imperfect competitor? Explain. (c) If the wage rate were $115, how many workers would be hired? How much would the total wage bill come to? (d) If the wage rate were $60, how many workers would be hired? How much would the total wage bill come to? (e) How many workers would be hired if the wage rate were $16? (f) How many workers would the firm want to hire if the wage rate were $0?
If more buyers came into the market for a good, we would expect to see the market demand curve
A. reflect a positive relationship between price and quantity demanded. B. shift inward and to the left. C. shift outward and to the right. D. remain unchanged since none of the determinants of individual demand changed.
When the price of insulin is $10, consumers demand 100 units; when the price is $15, consumers demand 100 units; and when the price is $20, consumers demand 100 units. Based on this information, the demand for insulin is:
A. perfectly inelastic B. elastic C. unit elastic D. perfectly elastic
The ratio at which nations will exchange one product for another is known as the
A. terms of trade. B. exchange rate. C. discount rate. D. balance of trade.