To calculate the multilateral effective exchange rate for a nation for each trading partner:
a. add the share of trade to the % change in the exchange rate and add the sums.
b. divide the share of trade by the % change in the exchange rate and add the dividends.
c. subtract the share of trade from the % change in the exchange rate and add the differences.
d. multiply the share of trade by the change in the exchange rate and add the products
Answer: d. multiply the share of trade by the change in the exchange rate and add the products
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If a consumer is always indifferent between an additional one grapefruit or an additional two oranges, then when oranges are on the horizontal axis the indifference curves:
A) will be straight lines with a slope of -1/2. B) will be straight lines with a slope of -1. C) will be straight lines with a slope of +1/2. D) will be right angles whose corners occur on a ray from the origin with a slope of +2. E) none of the above
Which statement is true?
A. The lower incomes that women earn relative to those earned by men is explained entirely by employment discrimination. B. Although there are many theories of poverty, few have any validity. C. Much of black poverty is caused by black male joblessness. D. None of these statements are true.
Which of the following best explains an economic criticism of unregulated monopolists?
A. Monopolists do not try to minimize their fixed costs of production. B. Monopolists produce where marginal revenue is greater than marginal costs. C. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options. D. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.