A market basket of goods costs $350 in the United States and 200 pounds in the United Kingdom. According to the purchasing power parity theory, the exchange rate should move towards:
A. $0.67 per British pound
B. $1.50 per British pound
C. $0.57 per British pound
D. $1.75 per British pound
B. $1.50 per British pound
You might also like to view...
The 45-degree line splitting the distance between the axes in a Lorenz Curve is the:
a. line of equal share of expenditure. b. line of equivalent income. c. line of income equality. d. line of average income. e. line of absolute inequality.
A perfectly elastic supply curve is: a. upward sloping to the right
b. downward sloping to the left. c. horizontal. d. vertical.
A production possibilities frontier has a bowed shape if the opportunity cost is constant at all levels of output
a. True b. False Indicate whether the statement is true or false
Your state department of transportation is considering installing toll booths with gates on a quiet section of highway. If this is done, a good that is currently a:
A. nonexcludable good will become an excludable good. B. public good will become a private good. C. rival good will become an excludable good. D. nonrival good will become a rival good.