The nominal exchange rate:
A. is a synonymous term for the swap rate.
B. is the amount of one country's goods that could be obtained with a basket of goods of another country.
C. is the rate that one can exchange the currency of one country for the currency of another country.
D. is always expressed as units of a foreign currency per U.S. dollar.
Answer: C
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________ is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X
A) The omitted variable B) The positive-to-negative relationship C) Reverse causality D) Nonlinear slope
Another term for capitalism is the:
A. system of inputs and outputs. B. command system. C. socialist economy. D. market system.