Purchasing power parity suggests that the exchange rate between ...

[fbq8i]

Purchasing power parity suggests that the exchange rate between two currencies reflects differences in the overall price levels in the two countries.
 
  Indicate whether the statement is true or false

Question 2

A consequence of hyperinflation is that people
 
  A) increase the quantity of money demanded.
  B) receive higher real wage hikes, which increases their purchasing power for goods and services.
  C) who make fixed-payment loans to others receive higher payments as inflation increases.
  D) spend time trying to keep their money holdings near zero.
  E) want to lend funds because interest rates are so high.

[miss.ashley]

Answer to Question 1

TRUE

Answer to Question 2

D

[fbq8i]

Thanks for the timely response, appreciate it

[LVPMS]

TYSM