Three-wheel cars made in North Edsel are sold for 5000 pounds. Four-wheel cars made in South Edsel are sold for 10,000 marks. The real exchange rate between North and South Edsel is four three-wheel cars for three four-wheel cars
The nominal exchange rate between the two countries is A) 0.50 marks/pound.
B) 0.66 marks/pound.
C) 1.50 marks/pound.
D) 2.00 marks/pound.
C
Economics
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Market equilibrium occurs where the quantity supplied is equal to the quantity demanded
Indicate whether the statement is true or false
Economics
One problem with NAFTA that is not shared by other trade blocs is that
A) national environmental laws differ greatly. B) the countries are at very different stages of economic development. C) the countries speak different languages. D) the countries are not natural trading partners. E) the United States and Mexico have a history of conflict.
Economics