According to the purchasing power parity theory, in the long run
a. the exchange rate between any two currencies should be equal all over the world
b. the value of the dollar should equal the value of the pound which should equal the value of the yen
c. inflation rates should equalize around the world
d. interest rates should equalize around the world
e. the exchange rate between the Canadian dollar and the British pound should reflect differences in price levels between Canada and Britain
E
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A) there are restrictions on imports. B) residents of a country face barriers to establishing legal ownership of resources. C) property rights are well-defined. D) there are restrictions on exports.
Economic costs include implicit costs but not explicit costs
Indicate whether the statement is true or false
Ignoring taxes when making redistributive decisions has no impact on equity.
A. True B. False C. Uncertain
The demand for labor curve bends backward whenever the income and substitution effects work in opposite directions
a. True b. False