The higher the inflation differential between countries, the less ...

[newyorker26]

The higher the inflation differential between countries, the less likely it is that relative PPP will hold.
 
  Indicate whether the statement is true or false

Question 2

Most economists estimate that the U.S. factor of production most likely to be hurt by the formation of the NAFTA is unskilled U.S. labor.
 
  Indicate whether the statement is true or false

[cassie_ragen]

Answer to Question 1

FALSE

Answer to Question 2

TRUE
Explanation: One study by Leamer estimates that wages paid to unskilled workers could fall by 1000 while payments to capital and skilled labor should both rise.