When the ratio of domestic prices to foreign prices falls:
A) the real exchange rate depreciates only when the nominal exchange rate depreciates.
B) the real exchange rate depreciates even when the nominal exchange rate is constant.
C) the real exchange rate appreciates.
D) the real exchange rate depreciates only when the nominal exchange rate appreciates.
B
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Suppose a new employee is promised a pension payment of $8000 in the twenty-fourth year after joining the firm. The current pension contribution is $1200 a year. Assuming a six percent rate of return, their pension plan is said to be
A) fully funded. B) partly funded. C) unfunded. D) fully vested.
During the 2007-2009 financial crisis, many households found themselves with debts to repay. How might this explain the consumer response to the 2008 Tax Rebate?
What will be an ideal response?