If the U.S. inflation rate is 3 percent annually and the Swiss inflation rate is 5 percent annually, by what percent would the dollar price of francs need to change according to purchasing power parity?
a. Depreciate by 5 percent
b. Appreciate by 3 percent
c. Appreciate by 5 percent
d. Depreciate by 2 percent
e. Appreciate by 2 percent
D
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What will be an ideal response?
The rate a bank pays for deposit insurance should be independent of the investments undertaken by the bank with depositors' funds
Indicate whether the statement is true or false
Economists believe that political instability can facilitate economic development in an LDC by making its citizens more open to change and new technology
a. True b. False Indicate whether the statement is true or false
The Social Security payroll tax is ________ on the employee, and ________ on the employer, on all earned income up to a cap, which is adjusted for inflation each year.
A. 0 percent; 15.3 percent B. 6.2 percent; 6.2 percent C. 7.65 percent; 7.65 percent D. 15.3 percent; 0 percent