According to the text, which of the following factors may make the theory of purchasing power parity unrealistic?
A) Purchasing power parity works only with traded goods.
B) Trading countries may stop exchanging goods once prices between them equalize.
C) Shipping, insurance, and transaction costs may reduce the implication of purchasing power parity.
D) Prices may not equalize if goods arbitrage is reduced by trade barriers.
E) The effects of purchasing power parity may not show up until many years have passed.
B
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A decrease in the price level causes a ________ the IS curve and a ________ the aggregate demand curve
A) movement up along; movement up along B) shift to the right of; movement up along C) movement down along; movement down along D) shift to the left of; movement down along
A creator of an action movie who wants to protect their intellectual property would apply for which of the following?
A) a trade secret B) a copyright C) a patent D) a trademark