Suppose the Euros per U.S. dollar exchange rate is 2 . The aggregate price level in France is 100, and the aggregate price level in the United States is 125 . The real exchange rate between the two countries is _____

Assume a farmer has the ability to produce corn and/or beans. Whenever the farmer spends 1 hour less producing corn and 1 hour more producing beans, he reduces his output of corn by 2 bushels and raises his output of beans by 3 bushels. In view of these assumptions, the farmer's production possibilities frontier is bowed out

a. True b. False Indicate whether the statement is true or false

The Uruguay Round of GATT negotiations completed in late 1993:

A. established a free trade zone between the United States and Mexico. B. made the Russian ruble convertible into other currencies. C. created the European Union (EU). D. created international protections for intellectual property such as patents, copyrights, and trademarks.