Suppose that the United States does 1/2 of its trade with Canada, 1/4 with the United Kingdom, and 1/4 with Mexico. If the dollar real exchange rate rises by 10°/o with Canada, rises by 20% for the United Kingdom, and falls by 10% for Mexico, what is the percentage change in the real effective exchange rate?

Potential GDP is reached when

A) unemployment is zero. B) there is no cyclical unemployment. C) unemployment is above full employment. D) unemployment is below full employment. E) the natural unemployment rate equals zero.

The ________ is referred to as future value

A) product of interest payments and principal B) ratio of interest payments to principal C) ratio of principal to interest payments D) sum of interest payments and principal