A Big Mac costs $4.79 in the United States and 9.6 zlotys in Poland. If the exchange rate is 3 zlotys per dollar, purchasing power parity predicts that
A) the dollar will appreciate as the demand for dollars rises in the long run.
B) the dollar will depreciate as the demand for dollars falls in the long run.
C) the dollar will appreciate as the supply of dollars falls in the long run.
D) the dollar will depreciate as the supply of dollars rises in the long run.
D
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The Solow model predicts that the standard of living in poorer nations will converge on that of richer nations through rapid capital formation that raises output per person
The introduction of technological change to the model ________ change this prediction because technology ________ assumed to be freely available to all countries. A) does, is B) does, is not C) does not, is not D) does not, is
When money is used to compare the costs of different goods and services, it is functioning as
a. a unit of account b. a means of payment c. fiat money d. a store of wealth e. legal tender
The United States has roughly how much of the world's population?
A. 15 percent. B. 20 percent. C. 5 percent. D. 10 percent.
Export supply curves are __________________; import demand curves are ___________________
A. horizontal; vertical B. vertical; horizontal C. downsloping; upsloping D. upsloping; downsloping