If purchasing power parity holds between the U.S. and China:
A. the real exchange rate must be 1.
B. the nominal exchange rate must be 1.
C. the U.S. must no longer have a trade deficit.
D. China must no longer have a trade deficit.
A. the real exchange rate must be 1.
Economics
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An analysis of the case of Harley-Davidson reveals that the deadweight loss of import protection ___________ the gain in future producer surplus.
a. was slightly less than b. slightly exceeded c. vastly exceeded d. was roughly the same as
Economics
In the figure above, ceteris paribus, an increase in x is associated with
A) an increase in y. B) a decrease in y. C) an increase in z. D) a random change in z. E) no change in either y or z.
Economics