In Ireland, a pint of beer costs 3 euros. In Australia, a pint of beer costs 4 Australian dollars. If the exchange rate is .8 euros per Australian dollar, what is the real exchange rate?
a. 4/2.4 pints of Irish beer per pint of Australian beer
b. 3/3.2 pint of Irish beer per pint of Australian beer
c. 3.2/3 pints of Irish beer per pint of Australian beer
d. 2.4/4 pints of Irish beer per pint of Australian beer
c
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The Consumer Price Index (CPI) measures
A) the prices of a few consumer goods and services. B) the prices of those consumer goods and services that increased in price. C) the average of the prices paid by urban consumers for a fixed market basket of goods and services. D) consumer confidence in the economy. E) the average of the costs paid by businesses to produce a fixed market basket of consumer goods and services.
In a world where the price level could adjust immediately to its new long-run level after a money supply increase
A) The dollar interest rate would increase because prices would adjust immediately and prevent the money supply from rising. B) The dollar interest rate would fall because prices would adjust immediately and prevent the money supply from rising. C) The dollar interest rate would fall because prices would adjust immediately and prevent the money supply from decreasing. D) The dollar interest rate would decrease because prices would adjust immediately and prevent the money supply from decreasing. E) The dollar interest rate would fall because prices would not be able to prevent the money supply from rising.
Large increases in agricultural productivity were not the primary reasons for migrating to which area of the nation during the antebellum period?
a. Illinois and Wisconsin b. Indiana and Ohio c. The far west d. Texas and Mississippi
Exhibit 11-1Use the information below to answer the following question(s). National income accountBillions ofdollars Personal consumption expenditures$900 Personal taxes 180 Government consumption and gross investment 300 Interest income 60 Exports 40 Imports 75 Depreciation 60 Gross private domestic investment 200 Refer to Exhibit 11-1. What is this country's gross domestic product?
A. $1,225. B. $1,305. C. $1,365. D. $1,440.