According to the doctrine of purchasing-power parity, which of the following should depreciate if over the next year the inflation rate is higher in the U.S. than in the Euro area?
a. both the U.S. real exchange rate and the U.S. nominal exchange rate
b. the U.S. real exchange rate, but not the U.S. nominal exchange rate
c. the U.S. nominal exchange rate, but not the U.S. real exchange rate
d. neither the U.S. nominal exchange rate nor the U.S. real exchange rate
c
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A job loser is an individual
A) in the labor force whose employment was involuntarily terminated. B) who used to work full time but left the labor force and has now reentered it looking for a job. C) in the labor force who quits voluntarily. D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.
Capital goods are
A. produced in one year, whereas final goods are produced over a period of more than one year. B. final goods, because they are not used up during a given year. C. produced in the same year as the related final good, whereas intermediate goods are produced in different years. D. a type of intermediate good.