Nominal exchange rates differ from real exchange rates in that nominal exchange rates
A) do not correct for differing interest rates across countries.
B) do not measure the purchasing power of the currency.
C) are fixed, while real exchange rates are flexible.
D) are flexible, while real exchange rates are fixed.
B
Economics
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Money neutrality states that
A) with money, one can still use the representative agent. B) changes in money do not affect real aggregates. C) changes in inflation do not affect real aggregates. D) monetary policy is independent from politics.
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What affects the price elasticity of demand for a monopolist's product?
What will be an ideal response?
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