Suppose the exchange rate between the U.S. dollar and the Jamaican dollar was $1 U.S. = $40 Jamaican dollars. A beach towel sells for $20 in Miami and $60 Jamaican in Negril
A) Purchasing power parity does not prevail with these prices.
B) The U.S. dollar would be expected to depreciate.
C) The Jamaican dollar would be expected to appreciate.
D) All of the above are correct.
D
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The share of corporate tax in total federal revenues
A) has declined over the past few decades to a relatively low level. B) is larger than the other components of federal revenue. C) has grown significantly in each of the past 10 years. D) is the smallest of all the components of federal tax revenue.
Assume the marginal propensity to consume is 0.96 . Firms become pessimistic and decrease investment spending by $100 billion. Other things equal, real GDP will:
a. decrease by $100 billion. b. not change. c. decrease by $96 billion. d. decrease by $2,500 billion.
Which of the following statements is true?
A. Approximately 25 percent of Americans live in poverty. B. American poverty is less severe than global poverty. C. American poverty is defined by homelessness and malnutrition. D. American poverty standards are below world poverty standards.
In Figure 29.1, the deadweight loss associated with monopoly is
A. EBC. B. PmonopolyAB. C. FPPCC. D. ABC.