« 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 108 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?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Zebras are several species of African equids (horse family) united by their distinctive black and wh Zebras are several species of African equids (horse family) united by their distinctive black and wh
When the United States gets stuck over a controversial issue—usually something a divided Congress ca When the United States gets stuck over a controversial issue—usually something a divided Congress ca
Educational Achievement in the United States Educational Achievement in the United States
A fuel pump in a farming area that clearly states the red diesel fuel is for off-road use only ... A fuel pump in a farming area that clearly states the red diesel fuel is for off-road use only ...
Prevalence of Food Insecurity in the United States Prevalence of Food Insecurity in the United States
Types of Farms in the United States Types of Farms in the United States
Video: Summation - defined, spatial, temporal & AP generation or not

For a complete list of videos, visit our video library