In Equilibrium, All Traded Goods Sell at the Same Price

question 148

Multiple Choice

In equilibrium, all traded goods sell at the same price internationally. If the same goods are expressed in their home prices, then the ratio of the prices is equal to:

• A) one.
• B) zero.
• C) the rate of interest.
• D) the nominal exchange rate between the two currencies.

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Definitions:

Hypothalamus

A region of the brain below the thalamus; it coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Endocrine System

A collection of glands in the body that secrete hormones directly into the circulatory system to regulate various body functions.

Pituitary

A small gland located at the base of the brain that produces hormones influencing various bodily functions, including growth and metabolism.

Fertility

The natural capability to produce offspring, often assessed through rates of conception and childbirth.