If purchasing-power parity holds,the price level in the U.S.is 250,and the price level in Japan is 260,which of the following is true?
A) the real exchange rate is 250/260
B) the real exchange rate is 260/250
C) the nominal exchange rate is 250/260
D) the nominal exchange rate is 260/250
Correct Answer:
Verified
Q24: If P = domestic prices,P* = foreign
Q25: A pair of running shoes costs $70
Q26: If purchasing-power parity holds,a bushel of rice
Q27: If a dollar buys more corn in
Q28: According to the theory of purchasing-power parity,the
Q30: A tall latte in China costs 30
Q31: A basket of goods cost $800 in
Q32: The ability to profit by purchasing wheat
Q33: An MP3 player in Singapore costs 200
Q34: If the exchange rate is 60 Indian
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents