The theory of purchasing power parity suggests that, in the long-run, exchange rates are determined by ________
A) relative interest rate levels
B) relative price levels
C) the GDP values for the two countries
D) the most significant monetary authorities, including the Federal Reserve, European Central Bank, Bank of England and the Bank of Japan
B
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What does a monopolist's demand curve for labor look like? How does it compare to the market demand curve for a competitive industry? What does the supply curve of labor to a monopolist look like? Explain
What will be an ideal response?
Under which of the following circumstances should a firm hire more labor and less capital?
a. The last unit of labor employed generated more output / total product than the last unit of capital employed. b. The last dollar spent on labor generated more output / total product than the last dollar spent on capital. c. Labor is relatively much cheaper than capital. d. None of the above represents a condition where a firm should employ more labor and less capital.