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Author Question: A fundamental problem in international economics is how to produce A) a perfect degree of ... (Read 59 times)

itsmyluck

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on: Jun 30, 2018
A fundamental problem in international economics is how to produce
 
  A) a perfect degree of monetary harmony.
  B) an acceptable degree of harmony among the international trade
  policies of different countries.
  C) a world government that can harmonize trade and monetary policies
  D) a counter-cyclical monetary policy so that all countries will not be adversely affected by a financial crisis in one country.
  E) a worldwide form of currency.

Question 2

If relative PPP held, then the real exchange rate must be equal to one.
 
  Indicate whether the statement is true or false


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Brenm

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

FALSE
Explanation: If relative PPP held, then the real exchange rate must be equal to a constant number.


itsmyluck

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

amandalm

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Reply 3 on: Yesterday
Gracias!

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