The Nominal Exchange Rate Is the

question 30

Multiple Choice

The nominal exchange rate is the

• A)nominal interest rate in one country divided by the nominal interest rate in the other country.
• B)the ratio of a foreign country's interest rate to the domestic interest rate.
• C)rate at which a person can trade the currency of one country for another.
• D)the real exchange rate minus the inflation rate.

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Definitions:

Phillips Curve

An economic concept that depicts an inverse relationship between the rate of unemployment and the rate of inflation in an economy over time.

Phillips Curve

An economic concept that demonstrates an inverse relationship between the rate of unemployment and the rate of inflation within an economy.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short period, assuming some prices/wages are sticky.

Short-Run Phillips Curve

A visual depiction illustrating the opposite correlation between inflation rates and unemployment rates within an economy for a brief period.