If the CPI were fixed, then the fact that it is wrong by 0.8 percentage points means that over a ten year period it is wrong by

A. between 1.1 and 11 percentage points.
B. 1.1 percentage points.
C. 11 percentage points.
D. more than 11 percentage points.

Answer: D

Economics

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According to the theory of purchasing power parity, in the long run

A) the nominal exchange rate should equal the domestic inflation rate. B) the domestic inflation rate should equal the foreign inflation rate. C) the real exchange rate should equal 1. D) the real exchange rate should equal the domestic inflation rate divided by the foreign inflation rate.

Economics

A multinational organization that aims to promote world economic growth through more financial stability is

A) the World Monetary Fund. B) the International Bank. C) the International Monetary Fund. D) the International Monetary Bank.

Economics