A fundamental problem in international economics is how to ...

[itsmyluck]

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

[Brenm]

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]

Excellent

[nathang24]

Gracias!