The Price of the Average Domestic Good or Service Relative

question 4

Multiple Choice

The price of the average domestic good or service relative to the price of the average foreign good or service, when prices are expressed in terms of a common currency is called the ________ exchange rate.

• A)flexible
• B)fixed
• C)real
• D)nominal

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Definitions:

Social Regulation

Consists of policies and rules designed to correct behaviors that are not in the best interest of society, including environmental protection and worker safety.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Harmony

A state of peacefulness or agreement in feelings, actions, ideas, or interests among individuals or groups.

Antitrust Laws

Legislation enacted to prevent monopolies, promote competition, and ensure fair business practices in the marketplace.