If the current €/$ exchange rate is at parity, then the Euro price of a handbag costing US$135 is:
(a) €100.
(b) €135.
(c) €270.
(d) We need more information to calculate the Euro price.
Answer: (b) €135.
You might also like to view...
The figure above shows the situation facing Smart Digit, Inc, a firm in monopolistic competition that produces calculators. What is the firm's economic profit per day?
A) zero B) between $1 and $700 C) between $701 and $900 D) more than $901
Explain what is meant by the "weighted cost of capital" and how it is used in capital budgeting
What will be an ideal response?
Which of the following statements is true?
A) The lower the price of a bond, relative to its face value, the lower the interest rate. B) The lower the price of a bond, relative to its maturity, the lower the interest rate. C) The higher the price of a bond, relative to its face value, the higher the interest rate. D) The lower the price of a bond, relative to its face value, the higher the interest rate.
A supply curve
A) has an indirect or negative relationship between price and quantity supplied. B) has a direct or positive relationship between price and quantity supplied. C) shows the relationship between quantity supplied and income. D) shows the relationship between complements.