The purchasing power parity theory states that
A) exchange rates between any two currencies will adjust to reflect changes in the relative price level of the two countries.
B) exchange rates between any two currencies will adjust to reflect change in the relative income growth rates of the two countries.
C) the larger the economic growth rate in a country, the less likely its currency will depreciate in value.
D) exchange rates cannot be compared over time.
E) currencies appreciate as often as they depreciate.
A
You might also like to view...
Consumer’s surplus can be written as
A. total expenditure?total utility. B. total utility?total expenditure. C. marginal utility?marginal expenditure. D. marginal expenditure?marginal utility.
Write an essay that compares and contrasts primary-export-led development policies with import-substitution policies
What will be an ideal response?
If Jason's fixed cost totals $800 with variable cost per unit of $10 at a quantity of 100 units, what would his average total cost equal?
a. $8.10 b. $18.00 c. $90.00 d. $91.00
Refer to the above table. At a price of $450, there is an
A. excess quantity demanded of 9,000 tablets. B. excess quantity demanded of 6,000 tablets. C. equilibrium. D. excess quantity supplied of 4,000 tablets.