Author Question: Initially the nominal exchange rate between the South Korean won and the U.S. dollar is 950 won per ... (Read 111 times)

cartlidgeashley · **on:** Jun 29, 2018

Initially the nominal exchange rate between the South Korean won and the U.S. dollar is 950 won per dollar. If the nominal exchange rate increases to 1000 won per dollar and the U.S and Korean price levels do not change, the real exchange rate

A) is the same as before.
B) is greater than before.
C) is less than before.
D) More information is needed to answer the question.

Question 2

The interest rate that the Fed charges when it makes a last resort loan is the ________ rate.

A) discount
B) short-term
C) reserve
D) federal funds