A quality men's suit in the U.S. costs $400 . The same suit costs 300 British pounds in the U.K. The nominal exchange rate is .60 pounds per dollar. A. Find the real exchange rate. Show your work. B. In terms of dollars where is the suit cheaper?

All of the following are possible explanations for the increase in U.S. government budget deficits as a percentage of GDP since the early 2001 EXCEPT

A) increases in tax revenues. B) increases in payments for entitlements. C) increases in government spending. D) decreases in tax rates.

According to the above figure for a gasoline market, at a price of $1 per gallon of gasoline, there would be

A) a shortage of 30 million gallons. B) a surplus of 30 million gallons. C) a shortage of 20 million gallons. D) a surplus of 50 million gallons.