The real exchange rate is
A) the price of one currency in terms of another.
B) the price of domestic goods relative to foreign goods.
C) the quantity of gold that can be purchased by one unit of currency.
D) the difference in interest rates between two countries.
B
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Suppose the U.S. government is auctioning the rights to mine for gold in a government-owned region on the West coast. Gold has been found in areas close to the region to be auctioned and gold has a fixed market price. The value of the rights to mine for gold in this region is an example of ________.
A) a common value B) an independent private value C) a correlated value D) a public value
The rationale behind patents is that if inventors and artists cannot secure the returns from successful projects, fewer new inventions and works of art will be produced
Indicate whether the statement is true or false
As inflation increases, purchasing power ______.
a. increases b. decreases c. remains constant d. falls to zero
According to the real-business-cycle perspective
A. the Phillips curve is very important. B. the economy cannot be stabilized by active policy actions. C. passive policy making is important. D. active policy making is important.