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
a
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Institutions that channel funds from suppliers of financial capital to users of financial capital are referred to as:
A) deposit insurance committees. B) financial intermediaries. C) central banks. D) mutual funds.
By the end of the 1960s, many countries felt that they were importing inflation from
A) the United States. B) Germany. C) France. D) Japan. E) the United Kingdom.
Technological advancement creates unemployment in firms that shut down or labor that is laid off. Wealth in this case is
a. Destroyed, since firms are shutting down and production of certain goods and services decreasing b. Created, since the dislocated labor and resources are absorbed by new firms created through the technological innovation, moving them to higher value use c. Destroyed, since technological progress is leading to higher unemployment d. None of the above
In the loanable funds market which of the following is true? a. Borrowers represent supply and government represents demand. b. Borrowers represent supply and banks represent demand
c. Banks represent supply and savers represent demand. d. Savers represent supply and borrowers represent demand.