Under the gold standard, if the dollar price of gold is pegged at $35 per ounce and the euro price of gold is pegged at 12 euro per ounce, what is the dollar/euro exchange rate?

What will be an ideal response?


The dollar/euro exchange rate must be constant and equal to
($35 per ounce) / (12 euro per ounce) = $2.92 per euro.

Economics

You might also like to view...

Connecting public roads in one city to public roads in another is an example of a _____ problem where larger governments can help smaller governments

a. negative externalities b. economies of scale c. prisoners' dilemma d. coordination problem

Economics

If U.S. consumption falls short of U.S. production, the U.S. imports the difference

a. True b. False

Economics

If the economy is self-regulating and current Real GDP is greater than Natural Real GDP, the economy is operating __________ the natural unemployment rate and wages will soon __________

A) below; fall. B) above; fall C) below; rise D) above; rise E) none of the above

Economics

Raising the minimum wage would:

A. help some workers while hurting others. B. help all workers and hurt all firms. C. hurt all workers and help some consumers. D. help workers and help consumers.

Economics