According to purchasing-power parity, if over the course of a year the price level in the U.S. rises more than in Japan, then which of the following falls?
a. the U.S. real exchange rate, but not the U.S. nominal exchange rate
b. the U.S. nominal exchange rate, but not the U.S. real exchange rate
c. the U.S. nominal exchange rate and the U.S. real exchange rate
d. neither the real exchange rate nor the nominal exchange rate
b
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Which one of the following is not a condition for a successful water market?
a. Property rights must be clearly defined b. A system must be in place to resolve conflicts c. Transaction costs must be relatively high d. Water demand must exceed water supply e. Water must be physically transferable
Which of the following reduced aggregate demand and thereby contributed to the crisis of 2008?
a. a rise in the value of the U.S. dollar b. falling housing and stock prices c. an increase in the real rate of interest d. optimism about future economic conditions