88.9 yen A Big Mac in Japan costs 400 yen while it costs $4.50 in the...
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88.9 yen A Big Mac in Japan costs 400 yen while it costs $4.50 in the U.S.. The nominal exchange rate is 100 yen per dollar. Which of the following would both make the real exchange rate move towards purchasing-power parity? a. the price of Big Macs in the U.S. rises, the nominal exchange rate falls b. the price of Big Macs in the U.S. rises, the nominal exchange rate rises c. the price of Big Macs in the U.S. falls, the nominal exchange rate falls d. the price of Big Macs in the U.S. falls, the nominal exchange rate rises 15. en 20 ad A U.S. grocery chain borrows money to buy a warehouse in Ohio and another in Italy. Borrowing for which warehouse(s) is included in the demand for loanable funds in the U.S.? 14. a. both the one in Ohio and the one in Italy b. neither the one in Ohio nor the one in Italy c. only the one in Ohio d, only the one in Italy 16. Which of the following would make both the equilibrium real interest rate and the equilibrium quantity of loanable funds decrease? a. The demand for loanable funds shifts left. b. The supply of loanable funds shifts right. c. The demand for loanable funds shifts right. d. The supply of loanable funds shifts left. 88.9 yen A Big Mac in Japan costs 400 yen while it costs $4.50 in the U.S.. The nominal exchange rate is 100 yen per dollar. Which of the following would both make the real exchange rate move towards purchasing-power parity? a. the price of Big Macs in the U.S. rises, the nominal exchange rate falls b. the price of Big Macs in the U.S. rises, the nominal exchange rate rises c. the price of Big Macs in the U.S. falls, the nominal exchange rate falls d. the price of Big Macs in the U.S. falls, the nominal exchange rate rises 15. en 20 ad A U.S. grocery chain borrows money to buy a warehouse in Ohio and another in Italy. Borrowing for which warehouse(s) is included in the demand for loanable funds in the U.S.? 14. a. both the one in Ohio and the one in Italy b. neither the one in Ohio nor the one in Italy c. only the one in Ohio d, only the one in Italy 16. Which of the following would make both the equilibrium real interest rate and the equilibrium quantity of loanable funds decrease? a. The demand for loanable funds shifts left. b. The supply of loanable funds shifts right. c. The demand for loanable funds shifts right. d. The supply of loanable funds shifts left.
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a As per the current exchange rate the price of the Burger ... View the full answer
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Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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