Assume the nominal dollar-per-euro ($/€) exchange rate appreciates by 2%, U.S. prices rise by 5% and Euro-Area prices rise by 3%. By approximately how much does the real exchange rate change?
a. 2%
b. 3%
c. 1%
d. There is no change.
e. 5%
.D
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__________ are the best example of securities that trade primarily in a brokered market
A) Common stocks B) Corporate bonds C) Municipal bonds D) Tombstones
To reduce the problems of illegal immigrants, should the United States license migrant workers from Latin America who want to work in the United States as visiting workers, as long as jobs are available?
What will be an ideal response?
After a speculative attack has been successful, and a country is forced to devalue its currency, it is common to see many local business firms driven to bankruptcy. This most commonly occurs because _____
a. nobody ever wants to invest in a country that just suffered a devaluation b. many local firms took foreign loans (denominated in, say, dollars), and they cannot repay them at the new exchange rate c. the WTO forces troubled firms to show profits or make way for new, more efficient firms d. local firms cannot compete with their foreign competitors at the new prices after the devaluation e. many local firms do not know how to deal with the complicated financial operations involved in a speculative attack
For which of the following commodities are consumers usually willing to pay a premium to save time?
a. Microwave oven b. A new production facility c. Stocks of a company d. Residential property