Suppose a Dell computer that sells for $2,000 in the U.S. is exported to the Netherlands. If the exchange rate is 2 Dutch guilders per U.S. dollar, then according to purchasing power parity theory, what would be the Dutch guilder price of the computer in the Netherlands?

a. 5000 guilders
b. 1000 guilders
c. 2000 guilders
d. 4000 guilders

d

Economics

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For most people, as their income increases, their utility from that income ________ at a(n) ________ rate.

A. decreases; increasing B. increases; increasing C. decreases; decreasing D. increases; decreasing

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