If the price of a good in the U.S. is $10 and the unit of foreign currency is the dinar, in which case is the real exchange rate 5/4?
a. the foreign price is 4 dinars and the exchange rate is 1/2 dinars per dollar
b. the foreign price is 5 dinars and the exchange rate is 2.5 dinars per dollar
c. the foreign price is 4 dinars and the exchange rate is 2 dinars per dollar
d. the foreign price is 5 dinars and the exchange rate is 2/5 dinars per dollar
a
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Henry David Thoreau faced a choice: Stay in the village of Concord or move out to Walden Pond. He decided to move to Walden. What was his" opportunity cost"?
A) There was no opportunity cost if he didn't pay rent for his cabin on Walden Pond. B) The satisfaction he would have enjoyed were he to stay in Concord C) The sweat and toil of building his own cabin and living off the land at Walden Pond D) There was no opportunity cost, because he made a free and voluntary decision to live the way he preferred to live.
The 45-degree income line is the same as the aggregate expenditure curve
Indicate whether the statement is true or false