If the 2005 inflation rate in Canada is 4 percent, and the inflation rate in Mexico is 2 percent, then the theory of purchasing power parity predicts that, during 2005, the value of the Canadian dollar in terms of Mexican pesos will
A) rise by 6 percent.
B) rise by 2 percent.
C) fall by 6 percent.
D) fall by 2 percent.
D
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Arbitrage
a. Is the act of to buying low in one market and selling high in another market b. Can force a seller to go back to uniform pricing c. Can defeat direct price discrimination d. All of the above
In 2009, which category accounted for the highest share in the U.S. exports?
a. Industrial supplies b. Capital goods c. Services d. Consumer goods
If your disposable personal income increases from $30,000 to $40,000 and your savings increases from $2,000 to $4,000, your marginal propensity to save (MPS) is:
A. 0.2. B. 0.4. C. 0.5. D. 0.8.
What is the difference between the short run and the long run when there is full employment and the government engages in deficit spending?
A. Real GDP will increase in the short run but not the long run. B. Real GDP will increase in the long run but not the short run. C. Real GDP will increase in both the short run and the long run. D. Real GDP will not increase in either the long run or the short run.