Suppose purchasing power parity exists in the car stereo market in the United States and Australia. If a car stereo costs $230 in the United States and the exchange rate is $1 = $AUD1.67, the same car stereo may be purchased in Australia for approximately:
a. $AUD 138.
b. $AUD 230.
c. $AUD 2,300.
d. $AUD 384.
e. $AUD 108.
d
Economics
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In the table above, in terms of units of hamburgers, real income is
A) lower in case A than in cases B and C. B) lower in case B than in cases A and C. C) lower in case C than in cases A and B. D) equal in all three cases.
Economics
The "efficiency of the payments mechanism" refers to
a. the ease and speed of exchanging money for goods and services. b. how fast member banks replenish required reserves. c. how fast banks pay interest on deposit accounts. d. how fast countries pay off foreign debts.
Economics