A country's nominal exchange rate, e, is defined as the number of units of:
A. the foreign currency that one unit of the domestic currency will buy.
B. foreign goods relative to the number of units of domestic goods.
C. the domestic currency that one unit of the foreign currency will buy.
D. domestic goods relative to the number of units of foreign goods.
Answer: A
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Identify the correct statement.
A. If a country is likely to be buffeted mainly by internal shocks, the country should choose a fixed exchange rate. B. The effects of shocks under floating exchange rates depend on whether interventions are sterilized. C. International trade shocks can be countered by adopting a fixed exchange rate that helps to improve the price competitiveness of the country's products. D. International capital-flow shocks are likely to be less disruptive under fixed exchange rates.
As a consumer consumes more and more of a product in a particular time period, eventually marginal utility
A) rises. B) is constant. C) declines. D) fluctuates.
Marginal (in Econ)
What will be an ideal response?
If the tax cost of this proposed project is $300 per person, a majority vote will:
a. defeat this project and resources will be underallocated to it. b. pass this project and resources will be allocated efficiently. c. pass this project and resources will be overallocated to it. d. defeat this project and resources will be overallocated to it.