Purchasing power parity theory is a better guide to short-run movements in exchange rates than to long-run movements in exchange rates.
Answer the following statement true (T) or false (F)
False
You might also like to view...
The current debate about fiscal and monetary policy tends to focus on
A. which policy is less destabilizing. B. which policy is more effective. C. whether the Fed can control the money supply. D. which policy works more quickly.
________: when one nation can produce goods more cheaply than another nation
Fill in the blank(s) with correct word
Which of the following factors strengthens the case for policy activism?
A) flexible wages B) lack of real-business-cycles C) sticky prices D) flexible prices
Between 1820 and 1840 freight rates on western rivers declined drastically. The main reason for this drop in prices was _________
a. the decline in the price level. b. tolls and other barriers to trade decreased. c. the decline in monopoly power. d. the frequent use of the steamboat.