According to the purchasing power parity theory of exchange rates:
A. a dollar, when converted to other currencies at the prevailing floating exchange rate, has
the same purchasing power in various countries.
B. in equilibrium, national currencies have equal value in terms of gold.
C. the higher a nation's price level in terms of its own currency, the greater is the amount of
foreign exchange it can obtain for a unit of its currency.
D. nominal currency values will tend to equalize (become 1 = 1) in the long run.
A. a dollar, when converted to other currencies at the prevailing floating exchange rate, has
the same purchasing power in various countries.
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If you want to own $1 million when you retire in 45 years, how much should you put into your retirement fund now, given the interest rate is 3 percent?
A. $250,005. B. $436,770. C. $264,439. D. $275,389.
GDP equals hours of work multiplied by output per hour. This can be rewritten as
A. growth rate of potential GDP = growth rate of labor input + growth rate of labor productivity. B. potential GDP = wages + cost of production. C. growth rate of real GDP = growth rate of labor input + growth rate of marginal output. D. growth rate of GDP = growth rate of wages + growth rate of labor productivity.