1 Which of the following statements about exchange rates is correct?

1. Flexible exchange rate regimes are always better than fixed ones.
2. In the current context of flexible exchange rate systems, if the rate euro-dollar moves from 1.20 to 1.13 we would say that the euro has suffered a devaluation against the dollar.
3. Fixed exchange rate systems impose discipline but leave authorities without monetary policy.
4. In the current context of flexible exchange rate systems, if the rate euro-dollar moves from 1.20 to 1.13 we would say that the euro has suffered a revaluation against the dollar.

2Which f the following statements in not correct?

1. Over the long run a country can improve productivity by improving the education of its citizens.
2. Productivity depends positively on energy resources.
3. A higher population leads directly to higher productivity.
4. An increase in physical capital increases productivity.

Question 20

Which element would you say is the least relevant to understand long term growth in a country?

1. Productivity.
2. Human capital.
3. Institutions.
4. Real estate prices.