A simplified representation of the real world that is used to explain economic phenomena is a(n)

If a car costs $44,000 in the U.S. and 40,000 euros in Germany, what does the exchange rate need to be for purchasing power parity to exist?

a) 1 euro = $0.91 b) 1 euro = $1 c) 1 euro = $1.10 d) 1 euro = $1.76

A mortgage interest deduction would be considered

a. tax evasion. b. a subsidy to the poor. c. a deduction that benefits all members of society equally. d. a tax loophole.