What does the real exchange rate take into account that the nominal exchange rate does not?
a) The different tax rates between countries.
b) The different tariffs between countries.
c) The different price levels between countries.
d) The different transaction costs between countries.
Ans: c) The different price levels between countries.
You might also like to view...
Consider a firm operating with the following: price = 10; MR = 10; MC = 10; ATC = 10 . This firm is:
a. making an economic profit of 10. b. an example of monopolistic competition. c. going to go out of business in the long run. d. a monopolist for a product with a relatively inelastic demand. e. perfectly competitive in long-run equilibrium.
Which of the following factors of production is likely to be most productive?
a. A certified doctor working in a well-equipped hospital b. A medical student working as a volunteer in a rural health clinic c. A trained nurse without access to the latest medical technology d. A knowledgeable chemist without a degree in medical sciences e. A specialist doctor working in a hospital with poor infrastructure