Suppose the nominal exchange rate — Canadian dollar per Brazilian real — is constant
If the price level in Brazil rises by four percent, while the price level in Canada rises by eight percent, then the real exchange rate — Brazilian goods for Canadian goods — has ________ by ________ percent. A) declined; one-half
B) risen; one-half
C) risen; two
D) declined; four
D
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The market demand curve for mousetraps is
A) found by summing the quantities of mousetraps demanded at each income level by each buyer. B) found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. C) the horizontal sum of the individual demand curves for mousetraps of all the buyers. D) Both answers B and C are correct. E) Both answers A and C are correct.
Empirical evidence seems to suggest that there is _____ between education and education
a. a strongly positive link b. a weakly positive link c. no link d. a weakly negative link
Public goods, when left to the private market will be:
A. undersupplied. B. over consumed. C. under consumed. D. oversupplied.
If the Fed thought the economy was experiencing a recessionary gap, and it wanted to correct this gap, it would
A. raise the reserve requirement. B. sell bonds. C. lower the differential between the discount rate and the federal funds rate. D. increase aggregate supply.