The purchasing power parity theory is a reasonably good explanation for nominal exchange rate determination:
A. in the long run.
B. when there are fixed exchange rates.
C. when there are significant volumes of non-traded goods and services.
D. in the short run.
Answer: A
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The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500Using the regular percentage change formula, what is the price elasticity of supply when price decreases from $10 to $5?
A. perfectly elastic B. unit elastic C. elastic D. inelastic
There is 5 percent average tax on imported goods in the United States. This tax is known as a(n) ________.
A. quota B. tariff C. income tax D. sales tax
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.
An explicit cost is defined as
A) a cost that does not change as output changes. B) a nonmonetary opportunity cost. C) a cost that involves spending money. D) a nonmonetary accounting cost.