If the real exchange rate for coal is 1.5, the price of coal in the U.S. is $50 per ton, and the price of coal in Britain is 20 British pounds per ton, what is the nominal exchange rate?
a. 15/4
b. 5/3
c. 3/5
d. 4/15
c
You might also like to view...
The economic problem is essentially one of deciding how to make the best use of
A. limited resources to satisfy limited wants. B. unlimited resources to satisfy limited wants. C. limited resources to satisfy unlimited wants. D. unlimited resources to satisfy unlimited wants.
If firms are protected by substantial barriers to entry, short-run profits can turn into long-run profits
Indicate whether the statement is true or false
In the Keynesian analysis of changes from one Real GDP level to another, which of the following plays a critical role?
A) changes in prices B) the relationship between optimum inventory levels and current inventory levels C) the long-run aggregate supply (LRAS) curve D) the relationship between total expenditures (TE) and the aggregate demand (AD) curve E) none of the above
If fractional reserve banking exists, then:
A. the money multiplier is equal to 1. B. banks need only keep a portion of each deposit on hand. C. lending would be curtailed to nearly zero. D. money cannot be created in the economy through banks.