Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect
A) political instability in the United States.
B) a worsening of the U.S. balance of payments.
C) an appreciation of U.S. currency.
D) that a "dirty float" will emerge.
Answer: C
Economics
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Which of the following statements is true about revenue?
A) Revenue is calculated by dividing the price per unit by the number of units sold. B) The terms "revenue" and "profit" can be used interchangeably. C) A firm's revenue will increase as its costs increase. D) Revenue is the total amount received for selling a good or service.
Economics
If relative PPP held, then the real exchange rate must be equal to one
Indicate whether the statement is true or false
Economics