Purchasing power parity exists when domestic currency
A. buys as many goods abroad as at home.
B. buys more goods at home than abroad.
C. is not convertible to a foreign currency.
D. maintains a fixed exchange rate with a foreign currency.
Answer: A
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In the long run, a perfectly competitive market will
A) produce only the quantity of output that yields a long-run profit for the typical firm. B) generate a long-run equilibrium where the typical firm operates at a loss. C) supply whatever amount consumers demand at a price determined by the minimum point on the typical firm's average total cost curve. D) supply whatever amount consumers will buy at a price which earns the market an economic profit.
As the price of land decreases along its demand curve, the relative price of land
a. increases because the prices of other resources have also decreased. b. decreases because the prices of other resources have also decreased. c. increases because the prices of other resources have increased. d. decreases because the prices of other resources are held constant. e. remains constant because the prices of other resources also increase.
Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.AssetsLiabilities & Net WorthReserves$27,000 Checkable Deposits$110,000Loans50,000 Stock Shares200,000Securities33,000 Property200,000?Refer to the above data. Assuming the bank loans out all of its remaining excess reserves as a checkable deposit and has a check cleared against it for that amount, the bank will now have excess reserves of:
A. $5,000. B. $0. C. $12,000. D. $3,000.
If products C and D are close substitutes, an increase in the price of C will:
A. tend to cause the price of D to fall. B. shift the demand curve of C to the left and the demand curve of D to the right. C. shift the demand curve of D to the right. D. shift the demand curves of both products to the right.