The Exchange Rate Is $1 = 110 Yen

question 14

Multiple Choice

The exchange rate is $1 = 110 yen. If the price of a Japanese good is 37,500 yen, what is the approximate price of the good in dollars?

• A)$29.45
• B)$4,125,000
• C)$294.49
• D)$340.91

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Definitions:

Automatic Stabilizers

Economic mechanisms, such as progressive taxation and welfare, that automatically adjust to counteract economic fluctuations without the need for explicit government intervention.

Unemployment Compensation

A government program that provides financial assistance to individuals who have lost their jobs through no fault of their own.

Public Debt

The total amount of money that a government owes to creditors, typically as a result of borrowing to finance its expenditures.

GDP

Gross Domestic Product, which measures the total value of all goods and services produced within a country's borders in a specific time period.