The exchange rate

A. is the ratio of two countries’ GDPs.
B. is the rate at which one country’s money is flowing into another country.
C. states the price of one currency in terms of another currency.
D. is closely related to the concept of absolute advantage.

Answer: C

Economics

You might also like to view...

If E$/£ moves from 2 to 3, this is a percentage change of:

a. 50%. b. 33.3%. c. -33.3%. d. -50%.

Economics

To fight a recession, an appropriate monetary policy would be that the Fed conducts an open market operation that ________ government securities, ________ the federal funds rate, and ________ aggregate demand

A) buys; lowers; decreases B) sells; lowers; increases C) sells; raises; decreases D) buys; lowers; increases E) sells; raises; increases

Economics