For a given nominal exchange rate and foreign price level, a decrease in the domestic price level ________ the real exchange rate.
A. decreases
B. may either increase or decrease
C. offsets any change in
D. increases
Answer: A
You might also like to view...
After 1995 U.S. growth rate ________ and the European Rate ________
A) slowed down; speeded up B) speeded up; slowed down C) slowed down; slowed down D) speeded up, speeded up
If a firm's short-run total cost curve lies above its total revenue curve at all output levels, the goal of the firm should be to
a. minimize total cost b. maximize total revenue c. minimize its loss d. minimize marginal cost e. maximize marginal revenue
The September 11 attacks no doubt worsened the slowdown that had already begun earlier in mid-2000
a. True b. False
________ analysis addresses the question of whether a policy should be used, while ________ analysis addresses the economic consequences of a particular policy.
A. Positive; normative B. Fiscal; monetary C. Monetary; fiscal D. Normative; positive