Other things the same, the real exchange rate between U.S. and Belgian goods would be higher if
a. prices in the U.S. were higher, or the number of euro the dollar purchased were higher.
b. prices in the U.S. were higher, or the number of euro the dollar purchased were lower.
c. prices in the U.S. were lower, or the number of euro the dollar purchased were higher.
d. prices in the U.S. were lower, or the number of euro the dollar purchased were lower.
a
You might also like to view...
Show that for a monopolist with a constant marginal cost and facing a linear demand curve, if a specific tax is imposed on the monopolist, the tax burden is shared equally between the monopolist and the consumers
What will be an ideal response?
In cases where negative externalities are present, the equilibrium price in the market is higher than it should be to achieve the optimal allocation of resources
Indicate whether the statement is true or false
The equation now called the ______________ starts with a 2 percent real interest rate, and then instructs the Fed to lower the interest rate in proportion to any recessionary gap and to raise it in proportion to any excess of inflation above 2 percent.
A. Taylor rule B. rule of 70 C. Spencer’s rule D. None of the above is correct.
A government economist states that "[t]he collection of personal income tax revenues automatically falls during a recession." This statement best describes how the progressive income tax system:
A. increases crowding out in the economy. B. offsets the timing problem for fiscal policy. C. decreases real interest rates in the economy. D. serves as an automatic stabilizer for the economy.