Question 1

If Mexico imports British cars,then on the world market

Accepted Answer

A)  the demand for pesos rises and demand for pounds falls 
B)  the supply of pounds rises and demand for pounds falls 
C)  the demand for pounds rises and the supply of pesos rises 
D)  the supply of pesos falls and demand for pesos rises 
E)  the supply of pesos rises and the supply of pounds falls 
A)  the demand for pesos rises and demand for pounds falls 
B)  the supply of pounds rises and demand for pounds falls 
C)  the demand for pounds rises and the supply of pesos rises 
D)  the supply of pesos falls and demand for pesos rises 
E)  the supply of pesos rises and the supply of pounds falls

Question 2

Suppose the same automobile is produced by a multinational firm in the US and Europe. The price of the car is $12,500 in the US or €25,000 in Europe,and there are no transport costs or tariffs. Then according to the law of one price,the value of the dollar in terms of the euro should be

Accepted Answer

A)  ½ 
B)  1 
C)  2 
D)  2.5 
E)  4 
A)  ½ 
B)  1 
C)  2 
D)  2.5 
E)  4

If Mexico imports British cars,then on the world market

Suppose the same automobile is produced by a multinational firm in the US and Europe. The price of the car is $12,500 in the US or €25,000 in Europe,and there are no transport costs or tariffs. Then according to the law of one price,the value of the dollar in terms of the euro should be

What Is Macroeconomics

The Language of Macroeconomicsthe National Income Accounts

The Wealth of Nationsthe Supply Side

Capital Accumulation and Economic Growth

Total Factor Productivity, human Capital, and Technology

Endogenous Growth and Convergence

Unemployment and the Labor Market

International Trade

Globalization

Consumption Investment

Business Cycles

Money and Prices

Monetary Policy

Fiscal Policy and the Role of Government

Stabilization Policy

Financial Markets: Equities and Bonds

The Banking Sector

Sovereign Debt and Default

Exchange Rate Determination Iinominal Exchange Rates and Asset Markets

Currency Crises and Exchange Rate Systems

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Exam 19: Exchange Rate Determination I the Real Exchange Rate

If Mexico imports British cars,then on the world market

Suppose the same automobile is produced by a multinational firm in the US and Europe. The price of the car is $12,500 in the US or €25,000 in Europe,and there are no transport costs or tariffs. Then according to the law of one price,the value of the dollar in terms of the euro should be

What Is Macroeconomics

The Language of Macroeconomicsthe National Income Accounts

The Wealth of Nationsthe Supply Side

Capital Accumulation and Economic Growth

Total Factor Productivity, human Capital, and Technology

Endogenous Growth and Convergence

Unemployment and the Labor Market

International Trade

Globalization

Consumption Investment

Business Cycles

Money and Prices

Monetary Policy

Fiscal Policy and the Role of Government

Stabilization Policy

Financial Markets: Equities and Bonds

The Banking Sector

Sovereign Debt and Default

Exchange Rate Determination Iinominal Exchange Rates and Asset Markets

Currency Crises and Exchange Rate Systems

Filters