If the U.S. inflation rate is 3 percent annually and the Japanese inflation rate is 1 percent annually, by what percent would the dollar price of the yen need to change according to purchasing power parity?
a. Appreciate by 2 percent
b. Appreciate by 1 percent
c. Depreciate by 2 percent
d. Appreciate by 3 percent
e. Depreciate by 1 percent
A
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Marginal utility measures the
A) total utility from consumption. B) additional utility from an additional unit of consumption. C) average utility from an additional unit of consumption. D) additional cost of an additional unit of consumption.
When the price of tablets goes up and fewer tablets are purchased, this is representative of the
A) law of demand. B) law of supply. C) law of market operations. D) law of increasing costs.
Use the concept of economic rent to explain how rent controls could have an effect quite opposite to the intention
For a pure monopolist the relationship between total revenue and marginal revenue is such that:
A. marginal revenue is positive when total revenue is at a maximum. B. total revenue is positive when marginal revenue is increasing, but total revenue becomes negative when marginal revenue is decreasing. C. marginal revenue is positive when total revenue is increasing, but marginal revenue becomes negative when total revenue is decreasing. D. marginal revenue is positive so long as total revenue is positive.