For a given nominal exchange rate and domestic price level, a decrease in the foreign price level ________ the real exchange rate.
A. decreases
B. offsets any change in
C. may either increase or decrease
D. increases
Answer: D
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The PPF shifts if
A) the unemployment rate falls. B) people decide they want more of one good and less of another. C) the prices of the goods and services produced rise. D) the resources available to the nation change.
In the above table, if this is a perfectly competitive firm and the market price of the product is $8, what is the marginal revenue product of worker 3?
A) $96 B) $88 C) $80 D) $240
As third-party payments and government expenditures on healthcare increased following the passage of Medicare and Medicaid,
a. total expenditures on healthcare declined. b. the incentive of consumers to economize on their use of healthcare services increased. c. the incentive of suppliers to provide healthcare services at a low cost increased. d. both the prices of healthcare services and total expenditures on those services increased rapidly.
A minimum wage increases unemployment by
A) increasing the quantity of labor demanded. B) decreasing the quantity of labor demanded. C) shifting only the labor supply curve rightward. D) shifting only the labor demand curve leftward. E) shifting the labor supply curve rightward and shifting the labor demand curve leftward.