Under a fixed exchange rate system, if the inflation rate in the United States is 5 percent a year and the inflation rate in Australia is 0 percent a year, then the U.S. real exchange rate will:
A. remain constant.
B. increase 5 percent a year.
C. decrease 5 percent a year.
D. possibly increase or decrease.
Answer: B
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A monopoly firm's demand curve
A) is the same as the market demand curve. B) is perfectly inelastic. C) is more inelastic than the demand curve for the product. D) is inelastic at high prices and elastic at lower prices.
In the United States there is evidence of:
A. increasing wage inequality. B. an increase in the proportion of the population over 16 employed since 2000. C. an increase in in job creation since 2000. D. increasing wage equality.
What do reports that the dollar is "overvalued" mean? How will foreign exchange markets respond to this information? Support your answer graphically
What will be an ideal response?
Individuals and government have been contributors in harming the environment.
Answer the following statement true (T) or false (F)