sample_questions_with_answers

sample_questions_with_answers - Sample questions for ECN135

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Sample questions for ECN135 13. (p. 225) If the current exchange rate is 1€/1$U.S. and bagels cost 1€ in France and 1$ in the U.S. and the current exchange rate for bagels is 0.74 European bagel/1U.S. bagel and if the bagels are identical: a. An American would be better off trading their bagels for European bagels B . A person from France would be better off trading their bagels for U.S. bagels c. The Theory of Purchasing Power Parity is working d. The nominal exchange rate and the real exchange rate are equal 19. (p. 226) The real and nominal exchange rates differ in the sense that: a. The real exchange rate does not express differences in the purchasing power of a currency b. The nominal exchange rate is adjusted for price differences between countries and the real is not C . The nominal exchange rate does not reflect differences in purchasing power between currencies d. Nominal exchange rates are fixed but real rates are flexible 20. (p. 226)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

sample_questions_with_answers - Sample questions for ECN135

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online