This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Relative PPP indicates that A) the exchange rate between any two currencies is equal to the ratio ... (Read 176 times)

mydiamond

  • Hero Member
  • *****
  • Posts: 804
on: Jun 30, 2018
Relative PPP indicates that
 
  A) the exchange rate between any two currencies is equal to the ratio of their price indexes.
  B) the same good sells for the same price internationally.
  C) the percentage change in the exchange rate is equal to the inflation differential between the domestic and foreign country.
  D) relative prices determine exchange rates.

Question 2

Suppose that a country experiences growth strongly biased toward its export, cloth
 
  A) this will tend to worsen the country's terms of trade.
  B) this will tend to improve the country's terms of trade.
  C) this will tend to leave the country's terms of trade unchanged.
  D) this will tend to worsen the terms of trade for the country's trading partner.
  E) this will increase the price of cloth relative to the imported good.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

debra928

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


mydiamond

  • Member
  • Posts: 804
Reply 2 on: Jun 30, 2018
:D TYSM

JCABRERA33

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Relative permeability of an artificial phospholipid bilayer to a variety of solutes. Relative permeability of an artificial phospholipid bilayer to a variety of solutes.
Hormonal regulation of digestion rate in the stomach and small intestine. Hormonal regulation of digestion rate in the stomach and small intestine.
The Punnett square demonstrates how the F2 ratio arises from an F1 x F1 cross. The Punnett square demonstrates how the F2 ratio arises from an F1 x F1 cross.
Indicators of Relative Economic Well-Being Indicators of Relative Economic Well-Being
Finding the angle from a ratio (Part 2) Finding the angle from a ratio (Part 2)
Main mechanism of carbon dioxide transport and exchange. A lesser amount of CO2 travels to the lungs Main mechanism of carbon dioxide transport and exchange. A lesser amount of CO2 travels to the lungs
Video: Gastroesophageal Reflux Disease (GERD)

For a complete list of videos, visit our video library