If a proportion of traded goods (such as oil) are priced in a foreign currency, the real exchange rate becomes:

According to this Application, the argument that the broken window is good for society only works

A) in theory, but never in reality. B) if the economy is operating above full employment where too few resources ae available. C) if the economy is operating at full employment where resources are fully employed. D) if the economy is operating below full employment where resources are underemployed.

Pegging a country's exchange rate to the dollar can be advantageous if

A) investors believe the dollar to be more stable than the domestic country's currency. B) a country wishes to conduct independent monetary policy. C) imports are not a significant fraction of the goods the country's consumers buy. D) the country does not trade much with the United States.