Suppose purchasing power parity holds. If the price level in the United States is 100 dollars per good and the price level in Japan is 250 yen per good, then the nominal exchange rate is ________ yen per dollar
A) 0.25
B) 0.4
C) 2.5
D) 4.0
C
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The market in which the currencies of different countries are exchanged is called the
A) money market. B) capital market. C) foreign exchange market. D) loanable funds market.
Assuming that good "x" is measured on the x-axis and good "y" is measured on the y-axis, if the utility for the two goods "x" and "y" can be measured as U = y, then it can be concluded that
A) "x" and "y" are perfect complements. B) "x" is a "bad". C) the indifference curves on the x,y graph are upward sloping. D) the indifference curves on the x,y graph are horizontal.
The above table gives the government outlays and tax revenues from 2008 through 2012 for two countries. In 2010 country A had a ________ and country B had a ________
A) budget deficit; budget deficit B) budget deficit; budget surplus C) balanced budget; budget deficit D) budget surplus; budget surplus E) budget surplus; budget deficit
In the figure above, the equilibrium exchange rate is expressed as $1 U.S. equals
A) $2.00 Canadian. B) $1.50 Canadian. C) $0.50 Canadian. D) none of the above