According to the purchasing power parity theory, which of the following is most likely to affect exchange rates?

A. Differences in inflation rates
B. Differences in interest rates
C. Differences in income levels
D. Differences in real GDP growth rates


Answer: A

Economics

You might also like to view...

Wendell can sell five motor homes per week at a price of $22,000. If he lowers the price of motor homes to $20,000 per week he will sell six motor homes. What is the marginal revenue of the sixth motor home?

A) $10,000 B) $12,000 C) $20,000 D) $22,000

Economics

If the relative price of S in terms of T is 2 and S has a nominal price of $1, then the relative price of T is

A) $2. B) 50 cents. C) 1/2 S. D) Need more information to answer.

Economics

For the period 1947-2012 in the United States, the price level was

A) acyclical. B) bicyclical. C) procyclical. D) countercyclical.

Economics

As indicated by real GDP, real GDP per capita and nominal GDP figures, the Great Depression was unmoved by the social reconstruction efforts of President Franklin D. Roosevelt and his supporters

Indicate whether the statement is true or false

Economics