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Author Question: Purchasing power parity holds when the exchange rate is equal to the product of the foreign price ... (Read 137 times)

future617RT

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Purchasing power parity holds when the exchange rate is equal to the product of the foreign price level and the domestic price level.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If the dollar depreciates relative to other currencies, which of the following is true?
 a. It takes more of the other currency to buy a dollar.
 b. It takes less of the other currency to buy a dollar.
 c. There is no change in the amount of the currency needed to buy a dollar.
  d. Not enough information to determine.



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k.lashomb

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Answer to Question 1

False

Answer to Question 2

b




future617RT

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Reply 2 on: Jun 30, 2018
:D TYSM


fatboyy09

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Reply 3 on: Yesterday
Excellent

 

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