If the real exchange rate is equal to 1,
A) currencies are at purchasing power parity
B) the relative demand for domestically produced goods will rise
C) the relative demand for domestically produced goods will fall
D) foreign investors will try to buy more domestic assets
E) net exports is equal to zero
Correct Answer:
Verified
Q2: Assume the Japanese yen has appreciated relative
Q3: If the U.S.real exchange rate is greater
Q4: If a country has a balance-of-payments surplus,
Q5: The increase in the real exchange rate
Q6: If the price level of U.S.goods is
Q8: The reason for the slow adjustment of
Q9: The ease with which international investors can
Q10: Our country's net exports will increase if
A)there
Q11: Which of the following is the equation
Q12: In 2012, imports of goods and services
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