During 2011 the inflation rate in Brazil was about 6.6% while in the U.S. it was about 3.3%. At the start of 2011 the nominal exchange rate was about 1.7 Brazilian real per U.S. dollar. If purchasing-power parity holds, about what should the nominal exchange rate have been at the end of 2011? Show your work
1.7(1.066)/(1.033) = 1.75
Economics
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Explain why the average total cost curve and the average variable cost curve get closer to each other as output expands
What will be an ideal response?
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Which one of the following industries is best classified as an oligopoly?
A) textbook publishers B) retailing C) wheat farms in the United States D) fast food restaurants
Economics
Suppose that the percentage change in demand is -20%, the price elasticity of demand is 3, and the price elasticity of supply is 2. What is the percentage change in the equilibrium price?
A. -4% B. 4% C. 100% D. -100%
Economics