« previous next »

Author Question: If a kilogram of coal costs 1.5 in Germany and 1 in the United States, the law of one price ... (Read 106 times)

TVarnum

  • Hero Member
  • *****
  • Posts: 548
on: Jul 7, 2018
If a kilogram of coal costs 1.5 in Germany and 1 in the United States, the law of one price calculates the expected exchange rate between the euro and the dollar to be ________.
 
  A) 0.67/
  B) 1.5/
  C) 1.67/
  D) 0.12/

Question 2

Which of the following is a reason for the failure of PPP to predict exchange rates accurately?
 
  A) PPP takes transportation costs into consideration while predicting exchange rates.
  B) PPP assumes no barriers to international trade while predicting exchange rates.
  C) PPP considers the role of people's confidence and beliefs about a nation's economy in exchange rate predictions.
  D) PPP does not take into account the effect of the market forces of demand and supply.


kiamars2010

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 7, 2018
Answer to Question 1

B

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Anopheles larva from southern Germany, about 8 mm long Anopheles larva from southern Germany, about 8 mm long
Prevalence of Obesity in the United States Prevalence of Obesity in the United States
The mortality rate in the United States increases with age and is lower for women than men at every ... The mortality rate in the United States increases with age and is lower for women than men at every ...
The production of electricity from coal is inefficient The production of electricity from coal is inefficient
Income Distribution in the United States, 2009 Income Distribution in the United States, 2009
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Energy sources - types

For a complete list of videos, visit our video library