The purchasing power parity predicts that if US price level rises relative to the Mexico price level, then
a. Dollar value will rise relative to the peso
b. Dollar value will fall relative to the peso
c. There is no effect on either currency
d. PPP predicts price level will normalize in the long-run
b
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Consider a firm with the following cost and revenue information: ATC = $20, AVC = $10, and P = MR = $30 . If the firm follows the rule to maximize profits, its output level is 3 . Therefore MC equals
a. $20 b. $10 c. $30 d. $90 e. $3
If a Japanese company opens a new factory in South Korea, it makes
a. foreign direct investment. The factory will make a bigger impact on South Korea's GDP than on its GNP. b. foreign direct investment. The factory will make a bigger impact on South Korea's GNP than on its GDP. c. foreign portfolio investment. The factory will make a bigger impact on South Korea's GDP than on its GNP. d. foreign portfolio investment. The factory will make a bigger impact on South Korea's GNP than on its GDP.