The account that tracks the flow of assets like bank deposits, stocks, and bonds is the ________ account.
A. reserve
B. current
C. financial
D. capital
Answer: C
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If the nominal exchange rate rises 5%, domestic inflation is 2%, and foreign inflation is 3%, what is the percent change in the real exchange rate?
A) 8% B) 6% C) 4% D) 2%
The concept of depreciation while widely employed, has little economic basis
a. True b. False
Economists use the term inflation to describe a situation in which
a. some prices are rising faster than others. b. the economy's overall price level is rising. c. the economy's overall price level is high, but not necessarily rising. d. the economy's overall output of goods and services is rising faster than the economy's overall price level.
The dollar price of a good relative to the average dollar price of all other goods is the good's:
A. real price. B. equilibrium price. C. market price. D. nominal price.