The purchasing power parity predicts that if the price level in the US falls relative to Mexico,
a. The dollar will appreciate relative to the peso
b. The dollar will depreciate relative to the peso
c. There is no effect on either currency
d. PPP predicts price level will normalize in the long-run
a
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Just as resources are scarce for the individual,
a. they are also scarce for the economy as a whole b. they are never scarce for the economy as a whole c. they are randomly abundant for other individuals d. there will be zero resources available for the economy as a whole e. the economy a whole is never faced with having to make rational choices about using resources
Nominal federal spending is a
a. good indicator of how responsibility the federal government is b. good indicator of the overall economy's performance c. measure of the public's concern for the educational needs of the country d. warning sign that our governmental officials are sometimes out of control e. misleading measure of government's effect, unless it is seen in the context of the country's income