If the nominal exchange rate e is foreign currency per dollar, the domestic price is P, and the foreign price is P*, then the real exchange rate is defined as
a. e(P/P).
b. e(P/P).
c. e + P/P.
d. e - P/P.
D
Economics
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Compared to the fixed-price/fixed-wage model, in the Keynesian model with a flexible price but fixed wage, an increase in the money stock will cause output to rise by
a. less while the interest rate will fall by more. b. less and the interest rate to fall by less. c. more but the interest rate to fall by less. d. more and the interest rate to fall by more.
Economics
Public goods are desired because
A) people want and value them but the private sector will not make them available. B) we want the government to spend our tax dollars. C) they came in small units. D) they make supply equal to demand for private goods.
Economics