Assume that the nominal exchange rate decreases by 4. If prices ...

[maychende]

Assume that the nominal exchange rate decreases by 4. If prices (both domestic and foreign do not change), we know that
 
  A) foreign goods are now relatively cheaper.
  B) foreign goods are now relatively more expensive.
  C) domestic goods are now relatively more expensive.
  D) both A and C

Question 2

Suppose the aggregate production function is given by the following: Y = N. Given this information, we know that labor productivity is represented by which of the following?
 
  A) 1/N
  B) N
  C) N/Y
  D) 1

[lou]

Answer to Question 1

B

Answer to Question 2

D

[maychende]

Correct answers!

[lou]

Great! Please up vote