If the GDP deflator in the United States is 114, and the GDP deflator in Ukraine is 142, which of the following exchange rates would the theory of purchasing power parity predict in the long run? (The Ukrainian currency is the hryvnia.)

Refer to Figure 8.1. Holding other variables constant, an increase in the skill level of workers will result in a

A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.

The Fed tries to prevent major financial crises through its control of financial markets

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