If the price in Canada was C$50 and the price in Switzerland was SFr 100, absolute purchasing power parity would indicate that:
a. The nominal value of the Swiss franc should rise by 100%.
b. The nominal exchange rate should be equal to C$2/SFr.
c. The nominal value of the Canadian dollar should rise by 100%.
d. The nominal exchange rate should be equal to C$0.50/SFr.
e. None of the above.
.D
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When a rent ceiling below the equilibrium rent is put in place, the outcome is
A) efficient because marginal benefit equals marginal cost. B) inefficient because marginal benefit equals marginal cost. C) inefficient because marginal benefit is greater than marginal cost. D) inefficient because marginal benefit is less than marginal cost. E) efficient because marginal benefit is greater than marginal cost.
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