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Author Question: Assume that a Chrysler automobile sells for 15,000 in the United States and that the exchange rate ... (Read 68 times)

OSWALD

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on: Jun 30, 2018
Assume that a Chrysler automobile sells for 15,000 in the United States and that the exchange rate is 1 = 1.3 . For purchasing power parity to hold, the same car should sell in Germany for:
 a. 15,000.
  b. 11,538.
  c. 19,500.
  d. 1,538.
  e. 15,500.

Question 2

What would be the statistical discrepancy for a current account balance of -85 billion and a capital account balance of 80 billion?
 a. -165 billion
  b. -5 billion
 c. 5 billion
 d. 165 billion


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diana chang

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

c

Answer to Question 2

c


OSWALD

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Reply 2 on: Jun 30, 2018
Gracias!

LVPMS

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

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