Refer to the table. The exchange rate is:
Answer the question on the basis of the following table, which indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place.
A. 4 libras for one dollar.
B. 0.25 libra for one dollar.
C. 0.40 libra for one dollar.
D. 3 libras for one dollar.
B. 0.25 libra for one dollar.
You might also like to view...
If you wanted to understand how an economy grew without looking at the impact of inflation, you should use ________ to compare different times within the economy
A) real GDP B) nominal GDP C) the CPI D) the GDP deflator
If Adam's Rib Joint took in $35,000 in revenue last week and had out-of-pocket expenses of $31,500:
a. it is clear that Adam made an economic profit of $3,500 b. Adam really didn't make any economic profit since he needs to put the difference between revenue and out-of-pocket expenses back into the firm. c. Adam clearly did not earn an economic profit. d. it is not clear whether Adam earned any economic profit last week because it depends on the magnitude of the implicit costs.