« previous next »

Author Question: A decrease in Swiss interest rates will cause A) an increase in the demand for U.S. dollars and ... (Read 90 times)

Chloeellawright

  • Hero Member
  • *****
  • Posts: 588
on: Jun 29, 2018
A decrease in Swiss interest rates will cause
 
  A) an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
  B) a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar.
  C) an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar.
  D) a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.

Question 2

Suppose the base reference period is 1982-1984. If your nominal wage rate is 8.00 per hour when the CPI is 180, what is your real wage rate in 1982-1984 dollars?
 
  What will be an ideal response?


guyanai

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The real wage rate equals 100 times the nominal wage rate divided by the CPI. Hence the real wage rate equals 100  (8.00)/(180 ) = 4.44.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Does Intelligence Increase with Brain Size? Does Intelligence Increase with Brain Size?
The Increase in Divorce The Increase in Divorce
How to calculate compound interest (Part 2) How to calculate compound interest (Part 2)
Economic recession in 2008 saw a small decrease in demand Economic recession in 2008 saw a small decrease in demand
Saving and Investment Rates of Industrialized Countries, 1960–1974 Saving and Investment Rates of Industrialized Countries, 1960–1974
The Distribution of Growth Rates, 1975–2009 The Distribution of Growth Rates, 1975–2009
Video: Introduction to Epilepsy

For a complete list of videos, visit our video library