1. If a certain automotive part can be purchased in Poland for 32 zloty or in Germany for €5.25 and if the nominal exchange rate is 8 zloty per euro, then the automotive part:
- costs more in Poland
- is more expensive in Germany
- is less expensive in Germany
- is more expensive in Poland.
- costs the same in Poland and Germany
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Other questions in this quiz
2. The measure of the cost of a standard basket of goods and services in any period relative to the cost of the same basket of goods and services in the base year is called the:
- consumer production index.
- cost-of-production index.
- consumer price index.
- cost-of-living indicator
- consumption production index
3. An increase in the value of a currency relative to other currencies is called a(n):
4. All of the following are nominal quantities EXCEPT the:
- wages paid to workers in a restaurant.
- cost of purchasing a new computer.
- number of new houses built in one month.
- price of a new car.
- salary offered to a new college graduate.
5. In the equation Md = kY - hi, where Md is money demand, the parameter k captures _____
- the transactions demand for money
- the money supply
- the total demand for money
- the speculative demand for money
- the effects of inflation