Author Question: What effect does the fixing of the nominal exchange rate have on the real exchange rate? a. The ... (Read 58 times)

Collmarie

  • Hero Member
  • *****
  • Posts: 569
What effect does the fixing of the nominal exchange rate have on the real exchange rate?
 a. The real exchange rate is fixed at the same level.
  b. The nominal exchange rate is fixed, but the real exchange rate varies with relative income levels.
  c. The real exchange rate still fluctuates with relative international prices.
  d. None of the above.

Question 2

Which of the following statements is correct?
 a. Purchasing Power Parity occurs when nominal interest rates are the same in two countries.
  b. Purchasing Power Parity means that the nominal exchange rate is 1 to 1.
  c. Purchasing Power Parity means that two countries have the same standard of living.
  d. Purchasing Power Parity means that the real exchange rate equals 1 to 1.



chinwesucks

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

.C

Answer to Question 2

.D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

For a complete list of videos, visit our video library