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Levart [38]
3 years ago
15

In the U.S. a candy bar costs $1. If the nominal exchange rate were 6 Chinese yuan per dollar and the real exchange rate were 1.

2, then, what would be the price of a candy bar in China? a. 5 yuan b. 7.2 yuan c. 3.6 yuan d. 6 yuan
Social Studies
1 answer:
stich3 [128]3 years ago
5 0

Answer:

Hence correct option is b i.e 7.2 yuan.

Explanation:

Given data;

candy bar cost is $1

Nominal exchange rate =  6 yuan equal to 1 dollar

Real exchange rate is = 1.2 dollar per 6 yuan

Therefore price for one candy at china will be  = 1.2 \times 6 = 7.2

The price of candy bar at china is = 7.2 yuan

Hence correct option is b i.e 7.2 yuan.

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Answer:

Bad, mainly because the governmental officials could accept bribes from people to change things, or take their favor in a case, or even bribe the president to pardon them from prison! Thus making the streets more dangerous with all these bad people around.

Also with the government being corrupt, the president could also appoint corrupted judges, so therefore having court cases be unwell.

Taxes could rise without good reason.

Roads and other things wont get fixed.

Government could hoard money, and the economy can fall.

Hope this helped

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