« previous next »

Author Question: The purchasing power parity hypothesis implies that an increase in inflation in one country relative ... (Read 62 times)

sc00by25

  • Hero Member
  • *****
  • Posts: 596
on: Jul 1, 2018
The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time
 a. increase exports
  b. reduce the competitive pressure on prices
  c. lower the value of the currency in the country with the higher inflation rate
  d. increase foreign aid
  e. increase the speculative demand for the currency

Question 2

In the above scenario, the profit of the company will
 a. increase.
  b. decrease.
  c. remains the same.
  d. may increase or decrease.


akudia

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes
In most ecosystems, sunlight provides the ultimate source of energy to power all biological activity In most ecosystems, sunlight provides the ultimate source of energy to power all biological activity
The schematic of a variable valve timing control circuit, showing that battery power (+) is being ... The schematic of a variable valve timing control circuit, showing that battery power (+) is being ...
Relative Humidity Changes at Constant Water-Vapor Content Relative Humidity Changes at Constant Water-Vapor Content
The Power of Classical Conditioning The Power of Classical Conditioning
Outgroup role in relative rate test Outgroup role in relative rate test
Video: Depolarization of the SA node, Action potentials of the myocardium & ANS effects

For a complete list of videos, visit our video library