Author Question: Purchasing power parity means that the expected exchange rate is such that the returns from ... (Read 44 times)

azncindy619 · **on:** Jun 29, 2018

Purchasing power parity means that the expected exchange rate is such that the returns from investing in two nations are equal.

Indicate whether the statement is true or false

Question 2

If the same fine is imposed on buyers and sellers of an illegal good so that the cost of breaking the law is the same for both, then

A) there is more government revenue collected than with an excise tax on the good.
B) there is no deadweight loss in this market because the extra producer surplus will exactly offset the lost consumer surplus.
C) the supply and demand curves both shift leftward by equal amounts.
D) the equilibrium price of the good definitely increases.