Multiple Choice
The exchange rate is the
A) opportunity cost of pursuing a nation's comparative advantage.
B) price of one country's currency expressed in terms of another country's currency.
C) ratio between imports and exports.
D) interest rate that is charged on risk-free international capital flows.
Correct Answer:
Verified
Correct Answer:
Verified
Q316: The lower the exchange rate today, ceteris
Q317: Suppose U.S. net exports are -$400 billion
Q318: Give an example of currency depreciation and
Q319: When the U.S. exchange rate rises, foreign
Q320: An increase in the interest rate in
Q322: Suppose the exchange rate of the U.S.
Q323: If in Chicago, U.S., the interest rate
Q324: If the U.S. exchange rate rises, the
Q325: U.S. residents come to believe that the
Q326: If net interest and net transfers are