According to the theory of purchasing power parity, if the inflation rate in England is greater than the inflation rate in Japan,
A) the law of one price has been violated.
B) the nominal value of the pound will appreciate against the yen.
C) the nominal value of the yen will appreciate against the pound.
D) the nominal value of the pound will appreciate against the yen, but only if the two countries are on the gold standard.
C
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The unattainable points in a production possibilities diagram are
A) the points outside the production possibilities frontier. B) the points of the horizontal and vertical intercepts. C) the points within the production possibilities frontier. D) the points along the production possibilities frontier.
Gold mining and the supply of gold depends not only on its price but also on the market rate of interest
a. True b. False Indicate whether the statement is true or false