If purchasing-power parity holds, the price level in the U.S. is 140, and the price level in Canada is 120, which of the following is true?
a. the real exchange rate is 120/140.
b. the real exchange rate is 140/120.
c. the nominal exchange rate is 120/140
d. the nominal exchange rate is 140/120
c
Economics
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Usually the imposition of trade barriers affecting a particular good benefits ________ people domestically, each of whom gains a ________
A) a few; little B) a few; lot C) many; little D) many; lot
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In the scenario above, the market is
A) a natural duopoly. B) a natural oligopoly with three firms. C) a natural monopoly. D) monopolistically competitive.
Economics