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Author Question: Purchasing power parity holds when the exchange rate is equal to the product of the foreign price ... (Read 129 times)

future617RT

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on: Jun 30, 2018
Purchasing power parity holds when the exchange rate is equal to the product of the foreign price level and the domestic price level.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If the dollar depreciates relative to other currencies, which of the following is true?
 a. It takes more of the other currency to buy a dollar.
 b. It takes less of the other currency to buy a dollar.
 c. There is no change in the amount of the currency needed to buy a dollar.
  d. Not enough information to determine.


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k.lashomb

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Reply #1 on: Jun 30, 2018
Answer to Question 1

False

Answer to Question 2

b


future617RT

  • Member
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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

mcarey591

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

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