In the long run, exchange rates
a. are determined by business cycle fluctuations
b. are determined by movements of hot money
c. will adjust until the price of a bundle of goods is the same in both countries
d. will reflect economic fluctuations in both countries
e. are still a mystery to most economists
C
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According to your textbook, which of the following best explains the fact that income inequality has increased in the U.S. since 1980?
A) The weakening of the labor union movement B) A reduction in economic growth C) A growing distrust of the efficacy of federal government spending programs combined with a rising concern over federal budget deficits D) A rise in the number of single-parent families at low income levels and a rise in two-parent two-earner families at higher income levels
If 2009 is the reference base period, what is the price index for the CPI basket of goods for 2015 in the above table?
A) 97.3 B) 102.8 C) 128.0 D) zero because the price of Blu-rays fell and the price of water increased
If an increase in the growth rate of AD leads to an increase in real GDP in the short run: a. the increase in AD was correctly anticipated
b. the increase in AD was greater than anticipated. c. the increase in AD was less than anticipated. d. the increase in AD could have been any of the above.
In the absence of discrimination, as human capital investments increase, wages will generally
A. increase or decrease. B. increase. C. decrease. D. not change.