In the long run, ________ dominate exchange rate movements.
A) short-run inflation differentials
B) long-run inflation differentials
C) short-run relative price changes
D) All of the above
Question 2
A country will be able to consume a combination of goods that is not attainable solely from domestic production if
A) the world terms of trade differ from its domestic relative costs.
B) the country specializes in one product.
C) the country avoids international trade.
D) the world terms of trade equal the domestic relative costs.
E) the country's domestic production value equals world relative value.
Verbs and Movements
Rate of Residential Change, Past Year, in the United States
Long-term relationships, especially those who are married, having a child
What rate, compounded once every 3 years, is equivalent to 9% effective rate?
Outgroup role in relative rate test
Flexible exchange rates are supposed to prevent long-term trade deficits.