The advantage of an effective exchange rate is
A) it gives us an accurate gauge for the strengthening or weakening of a currency.
B) it uses a weighted average of bilateral exchanges based on the country's trading partners.
C) unreliable because its using different weights to reflect trade flows.
D) A and B.
D
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Where marginal cost is less than average total cost,
a. opportunity cost must have been excluded from the calculation of marginal cost. b. marginal cost must be falling. c. marginal cost must be rising. d. marginal cost may be rising, falling, or constant.
The economic boom of the early 1940s resulted mostly from
a. increased government expenditures. b. falling prices of oil and other natural resources. c. an increase in the growth rate of the money supply. d. rapid developments in transportation, electronics, and communication.