Explain briefly PPP and IRP. Why might the latter hold better than the former over time?
What will be an ideal response?
IRP holds better because financial asset prices adjust faster to new information than goods prices.
Economics
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Evaluate the following statement. If a firm is suffering economic losses then the sensible thing to do is to shut down temporarily
What will be an ideal response?
Economics
A decrease in supply will cause
a. an increase in demand. b. a decrease in demand. c. an increase in quantity demanded. d. a decrease in quantity demanded. e. a decrease in equilibrium price.
Economics