If the purchasing power of a dollar is less than the purchasing power of the euro, purchasing power parity would predict that
A) in the long run, interest rates will move to equalize the purchasing power of the dollar and the euro.
B) in the short run, interest rates will move to equalize the purchasing power of the dollar and the euro.
C) in the short run, exchange rates will move to equalize the purchasing power of the dollar and the euro.
D) in the long run, exchange rates will move to equalize the purchasing power of the dollar and the euro.
D
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The current cost of a market basket of goods is $9,000 . The cost of the same basket of goods in the base year was $3,000 . The current price index is:
a. 900. b. 300. c. 166. d. 33.
Which of the following is considered a microeconomic issue?
A. Chinese economic growth has declined. B. The Federal Reserve cuts key interest rates in order to stimulate lending. C. Walmart decides to add more self-checkout machines as the cost of labor rises. D. India experiences a reduction in unemployment after opening its borders to trade.