Suppose the price of an ounce of silver is 100 nuevos soles in Peru and $400 in the United States. This implies:

a. the Peruvian nuevo sol is worth four times the value of a U.S. dollar.
b. the Peruvian nuevo sol is worth one-fourth the value of a U.S. dollar.
c. Peru's economy must be four times larger than the U.S. economy.
d. the U.S. economy must be four times larger than that of Peru.
e. the U.S. dollar is worth four times the value of a Peruvian nuevo sol.


a

Economics

You might also like to view...

Suppose you are the manager of Sweet Aroma, a firm that specializes in air freshener. To make your air freshener, you purchase apple skins from apple juice manufacturers. If the demand for apple juice decreases, this will cause the production of apple skins to ________ and the price of apple skins to ________.

A) decrease; rise B) increase; rise C) decrease; fall D) increase; fall

Economics

We do not add up the value of all intermediate goods produced in 2000 and record them as part of 2000 GDP

Indicate whether the statement is true or false

Economics

Monetary policy is made by the ______

Fill in the blank(s) with correct word

Economics

Based on the graph showing an increase in the growth of the money supply, as the economy moves from point A to point C, the trade-off between inflation and unemployment ______.


a. decreases slightly
b. increases slightly
c. holds steady
d. disappears

Economics