Author Question: The major difference between absolute purchasing power parity (APPP) and the law of one price (LOOP) ... (Read 47 times)

go.lag

  • Hero Member
  • *****
  • Posts: 667
The major difference between absolute purchasing power parity (APPP) and the law of one price (LOOP) is:
 a. APPP deals with the equilibrium exchange rate for one good, and LOOP deals with the equilibrium exchange rate for a basket of goods.
  b. APPP deals with changes in nominal exchange rates for a basket of goods, and LOOP deals with levels of exchange rates for a particular good.
  c. APPP deals with changes in nominal exchange rates for a basket of goods, and LOOP deals with changes of exchange rates for a particular good.
  d. APPP deals the equilibrium exchange rate for a basket of goods, and LOOP deals with the equilibrium exchange rate for one particular good.
  e. None of the above.

Question 2

The value of a nation's currency is a good reflection of:
 a. The nation's wealth.
  b. The nation's international competitiveness.
  c. The nation's income.
  d. None of the above.



eliasc0401

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

.D

Answer to Question 2

.D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

For a complete list of videos, visit our video library