This topic contains a solution. Click here to go to the answer

Author Question: Suppose purchasing power parity exists in the car stereo market in the United States and Australia. ... (Read 86 times)

Tazate

  • Hero Member
  • *****
  • Posts: 532
Suppose purchasing power parity exists in the car stereo market in the United States and Australia. If a car stereo costs 230 in the United States and the exchange rate is 1 = AUD1.67, the same car stereo may be purchased in Australia for approximately:
 a. AUD 138.
  b. AUD 230.
  c. AUD 2,300.
  d. AUD 384.
  e. AUD 108.

Question 2

If your aunt in Italy lends you 5,000 to complete your American education, this will be entered on the U.S. balance of payments account as a:
 a. debit (-).
 b. credit (+).
 c. non-entry, since it will affect Italy's payments but not those of the United States.
 d. devaluation, since the net value of the American capital stock will be reduced by the amount of your debt.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ladyjames123

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

d

Answer to Question 2

b




Tazate

  • Member
  • Posts: 532
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


bitingbit

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

For a complete list of videos, visit our video library