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Author Question: If a nation's interest rates are relatively low compared to those of other countries, then the ... (Read 9 times)

ss2343

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on: Apr 19, 2019

Question 1

A Big Mac costs $3 in the United States and 50 pesos in Mexico. The purchasing power parity theory would predict that the exchange rate in the long run is


◦ $1 = 6 pesos.
◦ $1 = 16.67 pesos.
◦ $1 = 0.06 pesos.
◦ 1 peso = $1.50.

Question 2

If a nation's interest rates are relatively low compared to those of other countries, then the exchange value of its currency will tend to


◦ depreciate under a system of floating exchange rates.
◦ depreciate under a system of fixed exchange rates.
◦ appreciate under a system of fixed exchange rates.
◦ appreciate under a system of floating exchange rates.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by ss2343 on Apr 19, 2019

cuttiesgirl16

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ss2343

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)

yeungji

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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