« previous next »

Author Question: What effect does the fixing of the nominal exchange rate have on the real exchange rate? a. The ... (Read 69 times)

Collmarie

  • Hero Member
  • *****
  • Posts: 569
on: Jun 30, 2018
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
Reply #1 on: Jun 30, 2018
Answer to Question 1

.C

Answer to Question 2

.D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Bacteria exchange DNA by several processes Bacteria exchange DNA by several processes
The Greenhouse Effect The Greenhouse Effect
Hall-effect switches use metallic shutters to shunt magnetic lines of force away from a silicon ... Hall-effect switches use metallic shutters to shunt magnetic lines of force away from a silicon ...
Friction significantly influences airflow near Earth’s surface, but its effect is negligible at ... Friction significantly influences airflow near Earth’s surface, but its effect is negligible at ...
Effect of pH on drug absorption. (a) A weak acid such as aspirin (ASA) is in a nonionized form in an ... Effect of pH on drug absorption. (a) A weak acid such as aspirin (ASA) is in a nonionized form in an ...
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
Video: Muscular System Animation

For a complete list of videos, visit our video library