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

Author Question: If the purchasing power of the dollar is greater than the purchasing power of the euro, purchasing ... (Read 147 times)

asmith134

  • Hero Member
  • *****
  • Posts: 576
If the purchasing power of the dollar is greater than the purchasing power of the euro, purchasing power parity predicts that the exchange rate will
 
  A) not fluctuate and stay constant in the long run.
  B) increase if the exchange rate is greater than 1 euro per dollar.
  C) decrease if the exchange rate is less than 1 euro per dollar.
  D) be equal to the relative purchasing power across the currencies in the long run.

Question 2

Refer to Table 16-4. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy.
 
  If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be lower than if Congress and the president had taken no action?
  A) real GDP and potential GDP B) potential GDP and the inflation rate
  C) real GDP and the inflation rate D) real GDP and the unemployment rate



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

spencer.martell

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

D

Answer to Question 2

C




asmith134

  • Member
  • Posts: 576
Reply 2 on: Jun 29, 2018
:D TYSM


mjenn52

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

For a complete list of videos, visit our video library