Author Question: If absolute PPP holds, then relative PPP will also hold. Indicate whether the statement is true ... (Read 70 times)

dejastew

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If absolute PPP holds, then relative PPP will also hold.
 
  Indicate whether the statement is true or false

Question 2

Which of the following is TRUE?
 
  A) Generally, the lower the country's average income, the less administrative, scientific, and technical capacity it has to design and enforce standards.
  B) National priorities do not change as income changescountries of all income levels seem to share the same priorities and values.
  C) Differences in income are always an obstacle to the harmonization of standards.
  D) The adoption of a common set of rules usually narrows the market and raises prices.



Mochi

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Answer to Question 1

TRUE
Explanation: If the levels of the variables (prices and exchange rates) hold, then changes in these variables should hold as well. But, not vice-versa.

Answer to Question 2

A



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