During 2011 the inflation rate in Brazil was about 6.6% while in the U.S. it was about 3.3%. At the start of 2011 the nominal exchange rate was about 1.7 Brazilian real per U.S. dollar. If purchasing-power parity holds, about what should the nominal exchange rate have been at the end of 2011? Show your work

Fractional reserve banking refers to a system in which the depository institution

A) holds reserves equal to its deposits. B) holds reserves greater than its deposits. C) holds reserves less than its deposits. D) holds zero reserves.

Gross domestic product is officially measured by adding together the:

a. quantity of each good and service produced by U.S. residents. b. market value of all final goods and services produced within the borders of a nation. c. quantity of goods and services produced by companies owned by U.S. citizens. d. none of these.