Suppose the U.S. price level is 150, the German price level is 450, and the Swiss price level is 600
If exchange rates are 3 euros/dollar and 4 francs/dollar, then purchasing power parity ________ between Germany and the United States and ________ between Switzerland and the United States.
A) does not hold; holds B) holds; does not hold
C) does not hold; does not hold D) holds; holds
D
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The figure above represents the competitive market for slices of key lime pie. When 60 slices are produced, the marginal cost
A) exceeds the marginal benefit. B) is less than the marginal benefit. C) equals the marginal benefit. D) is not defined. E) equals the deadweight loss on the 60th slice.
Refer to Figure 28-2. Suppose the Fed used expansionary policy to push short-run equilibrium to point B. If the short-run equilibrium remained at point B long enough
A) the short-run Phillips curve would shift down. B) the short-run Phillips curve would shift up. C) the economy would stay at point B in the long run. D) the economy would move back to point A.