Under a fixed exchange rate system, if the inflation rate in the United States is 5 percent a year and the inflation rate in Australia is 0 percent a year, then the U.S. real exchange rate will

A) increase 5 percent a year. B) decrease 5 percent a year.
C) remain constant. D) possibly increase or decrease.

Economics

In a Dutch auction, the higher the bid, the ________ the surplus and the ________ chance of winning

A) higher; lower B) lower; higher C) higher; higher D) lower; lower

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Economics

All items on a bank's balance sheet are stock variables

a. True b. False

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Economics