In which situation is the real value of 1 unit of currency the highest?
a) A Big Mac that costs 4 pounds in London.
b) A Big Mac that costs 450 yen in Tokyo.
c) A Big Mac that costs $4.75 in New York City.
d) A Big Mac that costs 7 Swiss Francs in Zurich.
Ans: a) A Big Mac that costs 4 pounds in London.
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A monetary expansion ________ stock prices due to a decrease in the ________ and an increase in the ________, everything else held constant
A) reduces; future sales price; expected rate of return B) reduces; current dividend; expected rate of return C) increases; required rate of return; future sales price D) increases; required rate of return; dividend growth rate
Economists would describe cartels as
a. the opposite of ignoring interdependence. b. a collusive arrangement. c. an undesirable form of market organization that may charge a monopoly price. d. All of the above are correct.