The theory of PPP suggests that if one country's price level rises relative to another's, its currency should
A) depreciate in the long run.
B) appreciate in the long run.
C) depreciate in the short run.
D) appreciate in the short run.
A
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The invention of the Internet should make poorer countries
A. poorer due to the expense of new technology. B. poorer because the Internet is primarily in richer countries. C. richer because technology adoption is easier. D. richer because they can distribute information without costs.
If workers have better information about their own ability to work than employers do, which of the following situations is present?
A. unemployment B. asymmetric information C. discrimination D. moral hazard
If real GDP was $13.1 trillion in 2013 and $13.3 in 2014, what is the growth rate?
A) $0.2 trillion B) 1.5 percent C) 15.0 percent D) 2.1 percent E) -1.5 percent
The law of diminishing marginal utility states that total utility increases by smaller and smaller increments as more of a good is consumed
a. True b. False Indicate whether the statement is true or false