Suppose country A pegs its nominal exchange rate to country B and that country A has a higher inflation rate than country B. In this situation, country A will experience
A) a real appreciation.
B) a worsening trade position.
C) an increase in the real exchange rate.
D) all of the above
E) none of the above
D
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Suppose firms in a perfectly competitive market are earning an economic profit. As new firms enter, the price ________ and the economic profit of each existing firm ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases
Which of the following exemplifies specific performance that a court might order from the party in breach of a contract?
a. A seller ordered to pay back the price of the commodity to the customer having failed to deliver it on-time. b. A popular singer requested to forgo the fee for her performance at a social fund raising program. c. The owner of a polluting factory ordered to convert his private plot into a public garden. d. A movie director ordered to work with an actress he had previously contracted with, instead of one he later found was available for a lower price.