Suppose the U.S. price level is 150, the German price level is 450, and the Swiss price level is 600
If exchange rates are 3 euros/dollar and 4 francs/dollar, then purchasing power parity ________ between Germany and the United States and ________ between Switzerland and the United States.
A) does not hold; holds B) holds; does not hold
C) does not hold; does not hold D) holds; holds
D
You might also like to view...
How is the public debt calculated?
A. By summing the annual government purchases over time B. By summing the annual difference between tax revenues and government spending over the years C. By subtracting current government spending from current government tax revenues D. By subtracting the government's total liabilities from its total assets
Refer to Scenario 12.1. What is the probability of Simon trying to rescue the man and Paula not helping?
A) 9% B) 21% C) 49% D) 70%
Which of the following REDUCES equality of income or wealth relative to the market distribution?
A) government payments to the poor B) a regressive income tax C) high taxes on bequests D) non-assortative mating
Government outlays equal: a. the difference between government expenditures and government revenues. b. the sum of government expenditures and government revenues. c. the sum of government purchases and transfer payments. d. the difference between government purchases and transfer payments
e. the ratio of government purchases to transfer payments.