Consumption expenditures include spending by households on:

Public goods like roads can be privatized by spending money on their repair

a. True b. False Indicate whether the statement is true or false

The purchasing power parity theory predicts that the exchange rate between two currencies will adjust in the long run to reflect price-level differences between the two currency regions. A given basket of internationally traded goods should therefore sell for similar amounts around the world (net of transportation costs)

Indicate whether the statement is true or false