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Author Question: Which of the following are theories meant to explain Why Price Levels are Lower in Poorer Countries? ... (Read 81 times)

tth

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Which of the following are theories meant to explain Why Price Levels are Lower in Poorer Countries?
 
  A) only Bhagwati-Kravis-Lipsey
  B) only Balassa-Samuelson
  C) only Goldberg-Knetter
  D) Bhagwati-Kravis-Lipsey and Balassa-Samuelson
  E) Bhagwati-Kravis-Lipsey and Goldberg-Knetter

Question 2

Suppose that the nominal exchange rate between the U.S. dollar and the Mexican peso is 0.10 dollars per peso. If Mexico's inflation is 10 percent and the United States' inflation is 0 percent, from the U.S. point of view, the real exchange rate
 
  A) appreciates to 0.11 dollars per peso.
  B) depreciates to 0.11 dollars per peso.
  C) appreciates to 0.09 dollars per peso.
  D) depreciates to 0.09 dollars per peso.
  E) appreciates to 0.2 dollars per peso.


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Smiles0805

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tth

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Reply 2 on: Jun 30, 2018
Wow, this really help


xiazhe

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

 

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