According to the purchasing power parity theory, a rise in the United States price level of 5 percent, and a rise in the Mexican price level of 6 percent cause
A) the dollar to appreciate 1 percent relative to the peso.
B) the dollar to depreciate 1 percent relative to the peso.
C) the dollar to depreciate 5 percent relative to the peso.
D) the dollar to appreciate 5 percent relative to the peso.
A
Economics
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Indicate whether the statement is true or false
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A political function of government is to
A) encourage the consumption of government-sponsored goods. B) provide public goods. C) correct for externalities. D) encourage the workings of the price system.
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