The exchange rate is 1.5 Bosnian markas per U.S. dollar. The price of a refrigerator in Bosnia is 1,200 markas while in the U.S. it is $1,000 . The real exchange rate is
a. 9/5
b. 5/4
c. 4/5
d. None of the above are correct.
b
You might also like to view...
Which of the following is NOT a component of gross domestic product?
A) purchases by consumers of used goods B) government purchases C) net exports D) purchases by consumers of finished goods
If the government finances an increase in government purchases with an increase in taxes, which of the following would you expect to see?
A) a decrease in the interest rate B) a decrease in aggregate demand C) an increase in the exchange rate D) an increase in net exports
A(n) _____ is a budget philosophy that was followed prior to the Great Depression that aimed at matching annual revenues with outlays, except during war time
a. annually balanced budget b. annual surplus budget c. biennial deficit budget d. biennially balanced budget e. cyclically balanced budget
Public choice theorists believe politicians make choices when the expected marginal benefits will ______ their expected marginal costs.
a. exceed b. be lower than c. equal d. increase