If purchasing-power parity holds, a dollar will buy
a. one unit of each foreign currency.
b. foreign currency equal to the U.S. price level divided by the foreign country's price level.
c. enough foreign currency to buy as many goods as it does in the United States.
d. None of the above is implied by purchasing-power parity.
c
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The ________ always equals zero
A) sum of capital and financial account plus official settlements account B) sum of current account plus capital and financial account C) sum of current account plus official settlements account D) sum of current account plus capital and financial account plus official settlements account E) official settlements account
The price elasticity of demand is calculated as the absolute value of the
A) percentage change in quantity demanded divided by the percentage change in price. B) percentage change in price divided by the percentage change in quantity demanded. C) change in quantity demanded divided by the change in price. D) change in price divided by the change in quantity demanded.