If the rate of inflation in Country A is higher than in Country B, then ________
A) in nominal terms, country A's currency should depreciate
B) in nominal terms, country B's currency should depreciate
C) the law of one price will not hold
D) purchasing power parity does not apply
A
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Labor productivity is $20 per hour and aggregate hours are 400 billion hours
a. What does real GDP equal? b. Because of technological advances, labor productivity doubles to $40 per hour. Furthermore, assume that aggregate hours decrease to 300 billion hours. What does real GDP equal?
In an unregulated market, healthcare consumers often
A) overestimate its benefit. B) cannot afford the care they need. C) overestimate their future need. D) All of the above are correct.
Productivity is defined as: a. the ratio of a specific measure of output to a specific measure of input
b. the production of worthwhile goods and services. c. the market value of goods, services, and resources produced per time period (e.g., per year). d. average input divided by average output. e. total input divided by average output.
If the economy goes into a recession and incomes fall, what happens in the markets for normal goods?
A. Equilibrium price and quantity both rise. B. Equilibrium price and quantity both fall. C. Equilibrium price falls, and the quantity rises. D. Equilibrium price rises, and the quantity falls.