The _______________ is the relative price of the goods and services of two countries. Select one:...
The _______________ is the relative price of the goods and services of two countries.
Select one:
a. nominal exchange rate
b. inflation rate
c. G-10 index
d. real exchange rate
Homework Answers
Ans) the correct option is d. real exchange rate
Real Exchange Rate is the Relative price of the goods and services of two countries.
Add Answer to:
The _______________ is the relative price of the goods and
services of two countries.
Select one:...
Which of the following is true about relative purchasing power parity? If two countries have a...
Which of the following is true about relative purchasing power parity? If two countries have a fixed exchange rate, inflation rates tend to be the same. This means that the two countries’ economies will tend to be closely intertwined. Changes in expected inflation rates will be reflected in the nominal interest rates on bonds. The higher the expected inflation, the higher the interest rates. This means that countries with higher inflation will tend to see strong demand for domestic bonds....
ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price...
ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI: uses current year quantities of goods and services b. a. includes separate market baskets of goods and services for both base and current years. includes only goods and services bought by typical urban consumers. d. C. is bias free. 10. Suppose a market basket of goods and services costs $1,000 in the base year and the consumer price index...
A price index is: Select one: a. a comparison of the price of one product with...
A price index is: Select one: a. a comparison of the price of one product with the change in real GDP b. a comparison of real GDP in one period relative to another c. the cost of a basket of products in a base or reference period divided by the cost of the same basket in another period d. a ratio of real GDP in one period to nominal GDP in another e. a measure of changes in prices
1) The price of one currency in terms of another is called A)...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
Which of the following is right about CPI and GDP deflator? Select one: a. CPI reflects...
Which of the following is right about CPI and GDP deflator? Select one: a. CPI reflects all goods and services produced domestically b. They both measure inflation c. They both measure nominal value relative to the real value d. GDP deflator is calculated using a fixed basket of consumer goods
Question B.1: National Accounts [28 points] Consider a world that consists of only two countries,...
Question B.1: National Accounts [28 points] Consider a world that consists of only two countries, A and B, that trade with each other The countries use a common currency, so nominal variables are comparable across countries. The total production of these countries is summarized in the following tables Country A Apples Country B Apples Oranges Peaches year year uant ice quant rice uant ice quant ice 2014 1.000 $0.90500$2.00 2015 1.200 $1.00550$2.00 2014 2,000 $0.90500 $3.00 2015 1,900 $1.00 600...
Year Quantity Goods Quantity Services Price Goods Price Services 2010 2000 6200 2 1.5 2011 2200...
Year Quantity Goods Quantity Services Price Goods Price Services 2010 2000 6200 2 1.5 2011 2200 6400 2.11 1.65 2012 2500 6750 2.15 1.65 2013 2505 7100 2.3 1.9 2014 2700 7300 2.35 2 2015 3050 8000 2.5 2 2016 3100 8450 2.65 2.1 2017 3500 8650 2.7 2.15 Assume that consumers’ typical consumption basket of goods and services is exactly represented by the (relative) quantities of goods and services produced in 2015. a. Calculate the implied CPI in each...
Suppose that the price of the same basket of goods at time 0 is PC0= 100...
Suppose that the price of the same basket of goods at time 0 is PC0= 100 in country C and PD0= 90 in country D, so that the exchange rate is SCD0=10090. Inflation rates are expected to be 10% in country C and 21% in country D, over the foreseeable future. a) Does PP approximately predict an appreciation or depreciation of currency C? b) What are the expected price levels in the two countries (i.e., PC1 and PD1 ) andthe...
... STAY HOME 8:18 PM 18%O جوجو All Media 18/03/2020, 8:13 PM If intermediate goods and...
... STAY HOME 8:18 PM 18%O جوجو All Media 18/03/2020, 8:13 PM If intermediate goods and services were included in GDP, Select one: 2 the GDP would be overstated O b the GDP would there have to be deflated for changes in the price level O e nominal GDP would exceed real GDP. O d. the GDP would be understated A price index is Select one O a. a comparison of the current price of a market basket to a...
According to Keynesian theory, the most important determinant of saving and consumption is Select one: a....
According to Keynesian theory, the most important determinant of saving and consumption is Select one: a. the level of real income. b. the stock of liquid assets. c. the stock of durable goods in the consumer's possession. d. the level of consumer indebtedness. Question 5 Not yet answered Marked out of 1.00 Flag question Question text In the Keynesian model, planned investment is inversely related to Select one: a. the interest rate. b. the level of income. c. the wage...
ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI: uses current year quantities of goods and services b. a. includes separate market baskets of goods and services for both base and current years. includes only goods and services bought by typical urban consumers. d. C. is bias free. 10. Suppose a market basket of goods and services costs $1,000 in the base year and the consumer price index...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
Question B.1: National Accounts [28 points] Consider a world that consists of only two countries, A and B, that trade with each other The countries use a common currency, so nominal variables are comparable across countries. The total production of these countries is summarized in the following tables Country A Apples Country B Apples Oranges Peaches year year uant ice quant rice uant ice quant ice 2014 1.000 $0.90500$2.00 2015 1.200 $1.00550$2.00 2014 2,000 $0.90500 $3.00 2015 1,900 $1.00 600...
... STAY HOME 8:18 PM 18%O جوجو All Media 18/03/2020, 8:13 PM If intermediate goods and services were included in GDP, Select one: 2 the GDP would be overstated O b the GDP would there have to be deflated for changes in the price level O e nominal GDP would exceed real GDP. O d. the GDP would be understated A price index is Select one O a. a comparison of the current price of a market basket to a...
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