To calculate the multilateral effective exchange rate for a nation for each trading partner:
a. add the share of trade to the % change in the exchange rate and add the sums.
b. divide the share of trade by the % change in the exchange rate and add the dividends.
c. subtract the share of trade from the % change in the exchange rate and add the differences.
d. multiply the share of trade by the change in the exchange rate and add the products
Answer: d. multiply the share of trade by the change in the exchange rate and add the products
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The following table shows the hours of labor supplied by six workers at different wage rates:
Wage Rate (per hour) Amanda (hours worked per day) Wendy (hours worked per day) Shaun (hours worked per day) Kevin (hours worked per day) Leo (hours worked per day) Ryan (hours worked per day) $12 4 3 2 4 3 5 $18 6 7 4 6 7 8 $24 8 9 9 9 10 11 $30 9 10 11 11 12 13 $36 10 11 12 12 13 14 a) If the market for labor consists of only these six workers, calculate the market supply of labor at the different wage rates. b) If the market demand for labor is 56 hours per day, what is the equilibrium wage rate? c) If the market demand for labor is 38 hours per day, what is the equilibrium wage rate?
Anything that causes the United States to buy more foreign goods shifts the foreign currency __________ curve to the __________
A) demand; right B) demand; left C) supply; right D) supply; left