Suppose an MP3 player sells for $75 in the United States and 50 pounds in Britain. Which exchange rate is consistent with purchasing power parity?
a) 1.50 pounds for $1.
b) 1 pound for $1.50.
c) 3 pounds for $1.
d) 1 pound for $1.
Ans: b) 1 pound for $1.50.
Economics
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Economic growth appears on a production possibilities curve as
A) the curve shifting out away from the origin. B) the curve shifting in toward the origin. C) a change in the slope of the curve. D) the points outside the production possibilities curve.
Economics
Explain what may occur when a buyer and a seller have unequal amounts of limited information. Describe two different types of problems that may arise when asymmetric information exists
What will be an ideal response?
Economics