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Author Question: Purchasing power parity exists when domestic currency: a. maintains a fixed exchange rate with ... (Read 165 times)

BrownTown3

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Purchasing power parity exists when domestic currency:
 a. maintains a fixed exchange rate with foreign currency.
  b. is not convertible into foreign currency.
  c. buys more goods at home than abroad.
  d. buys as many goods at home as it does abroad.
  e. appreciates in value against foreign currency.

Question 2

Whenever there is a deficit in the current account, the capital account:
 a. will be negative.
 b. will be positive.
 c. will be zero.
 d. could be negative, positive, or zero.



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swimkari

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Answer to Question 1

d

Answer to Question 2

b




BrownTown3

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


shewald78

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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