question archive Which of the following statements about purchasing power parity is correct? a
Which of the following statements about purchasing power parity is correct? a
Subject:EconomicsPrice: Bought3
Which of the following statements about purchasing power parity is correct? a. PPP will tend to cause those currencies with lower inflation rates to depreciate b. PPP allows for both countries' currencies to appreciate at their own rates of inflation O c. PPP is a theory that says price levels in two countries should be equal when measured in a common currency O d. PPP is an index of the average value of exchange rates Mark 0.00 out of 1.00 P Flag question Suppose a Canadian brewery sells beer in both Canadian and American markets and that all prices are in Canadian dollars. The Canadian domestic price is $17.00 per case while in the American market it sells the same case for $13.00. The average total cost of production is $11.50. This brewery could be accused of........ a. trying to reduce the American domestic price of beer o b. dumping c. exchange-rate manipulation O d. bad management Mark 0.00 out of 1.00 P Flag question The four major determinants of economic growth include all of the following EXCEPT....... a. Growth in physical capital b. Growth in human capital c. Technological improvement d. Growth in financial capital Mark 0.00 out of 1.00 P Flag question Which of the following phenomena adds a second channel to the monetary transmission mechanism? a. inflation b. diminishing marginal returns c. international capital mobility d. open-market operations
