If the purchasing power of the dollar is greater than the purchasing power of the euro, purchasing power parity predicts that the exchange rate will
A) not fluctuate and stay constant in the long run.
B) increase if the exchange rate is greater than 1 euro per dollar.
C) decrease if the exchange rate is less than 1 euro per dollar.
D) be equal to the relative purchasing power across the currencies in the long run.
D
Economics
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A) 1,600 B) 106,000 C) 40,000 D) 20,000
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The Leontief paradox found that:
a. exports should always be capital intensive. b. imports should always be labor intensive. c. U.S. exports were labor intensive. d. U.S. exports were capital intensive
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