If you were told that the exchange rate between the U.S. dollar and the Canadian dollar was 1.2, that would mean that Canadians would have to spend ____ to buy a 12 watch in New York City.
a. c and e
b. 10 U.S. dollars
c. 12 U.S. dollars
d. 14.4 U.S. dollars
e. 14.4 Canadian dollars
Question 2
When one observes consumption and investment patterns over time, one finds that:
a. like consumption, investment is fairly stable over time.
b. like consumption, investment is fairly erratic over time.
c. unlike consumption, which is fairly stable over time, investment is subject to erratic fluctuations.
d. unlike consumption, which is subject to erratic fluctuations, investment is fairly stable over time.
e. investment is rarely affected by technological and economic factors.
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