If the purchasing power parity theory were literally true
a. we should see some nations devaluing their currencies relative to the U.S. dollar while other nations revalue their currencies
b. the price of a traded good should be the same everywhere in the world
c. the price of a Big Mac should be the same everywhere in the world
d. the exchange rate should be the same everywhere in the world
e. prices should tend toward equality with exchange rates
B
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Recall the Application. The equilibrium price of pecans increased because the demand curve shifted
A) up and to the right. B) up and to the left. C) down and to the right. D) down and to the left.
A free rider:
A. contributes little or nothing to a public good while benefiting from others' contributions. B. prevents a market failure. C. contributes little or nothing to a public good, but also does not benefit from others' contributions. D. creates both positive and negative externalities.
Which of the following is not part of our portfolio of antitrust acts?
a. Sherman Act b. Clayton Act c. Federal Trade Commission Act d. Robinson-Patman Act e. Herfindahl-Hirschman Act
In the new classical model, a $100 billion increase in government purchases financed by borrowing will
a. increase the real interest rate, which will crowd out private spending. b. lead to a $100 billion increase in real GDP. c. lead to a $400 billion increase in real GDP if the marginal propensity to consume is three-fourths. d. leave the interest rate, aggregate demand, and real output unchanged.