« previous next »

Author Question: Under purchasing power parity (PPP), if U.S. monetary growth leads to a long run doubling of the ... (Read 42 times)

sabina

  • Hero Member
  • *****
  • Posts: 563
on: Jun 30, 2018
Under purchasing power parity (PPP), if U.S. monetary growth leads to a long run doubling of the U.S. price level, while Germany's price level remains constant, PPP predicts that the
 
  A) long-run DM price of the dollar will be doubled.
  B) long-run DM price of the dollar will be halved.
  C) long-run DM price of the dollar will remain the same.
  D) short-run DM price of the dollar will be halved.
  E) short-run DM price of the dollar will be doubled.

Question 2

Federal Reserve Chairman Volcker's policy to fight inflation
 
  A) led to the 1981-1983 recession, but was ultimately successful.
  B) led to the 1981-1983 recession, but did not end high inflation due to beggar-thy-neighbor effects.
  C) was perfectly complemented by Reagan's decrease in fiscal spending.
  D) led to the 1981-1983 recession and foretold the economic downturn in the mid-1990s.
  E) led to an immediate depreciation of the dollar.


dantucker

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

combined-cycle power plant combined-cycle power plant
(a) The relative age ranges of different dating techniques depend upon the half-life of the system u (a) The relative age ranges of different dating techniques depend upon the half-life of the system u
The features found in a long bone. The features found in a long bone.
If you are able to earn 6.2% compounded semi-annually in an account, how long will it take for ... If you are able to earn 6.2% compounded semi-annually in an account, how long will it take for ...
Fire power Mario Fire power Mario
Video: PET Scan Animation

For a complete list of videos, visit our video library