When the Price of a Good in the United States

question 4

Multiple Choice

When the price of a good in the United States is $2, while in Spain it is €2, and the nominal exchange rate is E_$/€ = 1.5, what is the relative price of the good in Spain versus the United States?

• A) 1
• B) 1.5
• C) 2/3
• D) 1/2

Understand the formulation of logical syllogisms involving disjunctive and categorical propositions.

Grasp the concept of assertion versus expression in propositions.

Understand the concept of logical validity in deductive reasoning.

Recognize the structure and validity of complex disjunctive syllogisms involving multiple disjuncts.

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Definitions:

Capital Flight

Capital flight refers to the sudden and large-scale outflow of financial assets and capital from a country due to economic or political instability.

Supply Of Dollars

The total amount of US dollars available in the economy, including physical currency and bank balances.

Foreign-Currency Exchange

The process of exchanging one currency for another, determining how much of one currency you can get for another.

Net Capital Outflow

The difference between the domestic country's total investment abroad and foreign investments within the domestic country.