The purchasing power parity theory helps explain long-run trends in exchange rates, but not short-run fluctuations
a. True
b. False
A
You might also like to view...
The PPF shifts if
A) the unemployment rate falls. B) people decide they want more of one good and less of another. C) the prices of the goods and services produced rise. D) the resources available to the nation change.
Discuss three ways in which U.S. banks can become involved in international banking
What will be an ideal response?
Which statement about U.S. poverty rates is true?
a. Poverty rates decreased during the 1960s. b. Poverty rates were at their lowest in 2011. c. Poverty rates increased during the 1970s. d. Poverty rates decreased significantly in 2013.
The monetary-policy framework called inflation targeting is used explicitly by
a. no major country. b. most major countries except the United States and Japan. c. the United States, but it is not used by other major countries. d. most major countries, including the United States and Japan.