« previous next »

Author Question: Which of the following conditions will occur when two countries are engaged in a credible, fixed ... (Read 80 times)

imanialler

  • Hero Member
  • *****
  • Posts: 539
on: Jun 30, 2018
Which of the following conditions will occur when two countries are engaged in a credible, fixed exchange rate regime?
 
  A) E = 1
  B) E > 1
  C) i = i
  D) E < 1

Question 2

Explain what effect a reduction in the unemployment rate will have on the real wage based on: (1 ) the WS relation; and (2 ) the PS relation.
 
  What will be an ideal response?


juwms

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A reduction in the unemployment rate will increase bargaining power, increase the nominal wage, and therefore increase the real wage based on wage setting behavior. Changes in the unemployment rate have no effect on the real wage based on price setting behavior.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Changes that occur during the processing of tyrosine pre-tRNA Changes that occur during the processing of tyrosine pre-tRNA
Under what conditions can the transition to middle school be associated with declines in grades and ... Under what conditions can the transition to middle school be associated with declines in grades and ...
Examples of Emergency Conditions Examples of Emergency Conditions
More and Less Developed Countries More and Less Developed Countries
Conditions Recommended for Prophylaxis Antibiotics Conditions Recommended for Prophylaxis Antibiotics
Perennials Adapted to Desert Conditions Perennials Adapted to Desert Conditions
Video: Gastrin (gastric emptying) & Secretin (buffering gastric acid)

For a complete list of videos, visit our video library