Author Question: Suppose the price of an iPad is 500 in the U.S, and 30,000 rupees in India. If an iPad is ... (Read 56 times)

strangeaffliction · **on:** Jun 30, 2018

Suppose the price of an iPad is 500 in the U.S, and 30,000 rupees in India. If an iPad is representative of average prices within a country, then the price of a basket of goods worth 1 in the U.S. costs ________.

A) 100 rupees in India B) 60 rupees in India.
C) 2 rupees in India D) 0.17 rupees in India

Question 2

Other things being equal, the quantity theory of money suggests that any increase in the money supply

A) results in a decrease in the aggregate price level.
B) causes the aggregate level of nominal Gross Domestic Product (GDP) to fall.
C) causes a reduction in the demand for money.
D) results in a proportionate increase in the price level.