Which of the following equations correctly represents nominal exchange rate?
A) Nominal exchange rate = units of foreign currency/1 unit of domestic currency
B) Nominal exchange rate = 1 unit of domestic currency/100 units of foreign currency
C) Nominal exchange rate = 100 units of domestic currency/1 unit of foreign currency
D) Nominal exchange rate = units of foreign currency/100 unit of domestic currency
A
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Which of the following would increase GNP in the United States?
A) an increase in the production of Japanese-owned Toyota cars in the U.S. B) an increase in the production of Japanese-owned Toyota cars in Mexico C) an increase in the production of Mexican-owned Grupo Minsa corn in the U.S. D) an increase in the production of U.S.-owned General Motors cars made in Mexico
If the current account is a deficit of 25 then
(a) the capital account is a surplus of 25. (b) the cash account is a surplus of 25. (c) the capital account is a surplus of 25 if the cash account is zero. (d) the cash account is a deficit of 25