Table 12-1

-Refer to the Table 12-1.What currency(ies)is(are)more valuable than predicted by the doctrine of purchasing-power parity?
A)the boliviano and dinar
B)the yen, kroner, and baht
C)the yen and kroner
D)the baht

Question

Table 12-1
 
-Refer to the Table 12-1.What currency(ies)is(are)more valuable than predicted by the doctrine of purchasing-power parity?
A)the boliviano and dinar 
B)the yen, kroner, and baht 
C)the yen and kroner 
D)the baht

Quizplus · Accepted Answer

The yen and kroner are more valuable than predicted by the doctrine of purchasing-power parity because their exchange rates are higher compared to their respective countries' inflation rates. The baht's exchange rate is roughly in line with its inflation rate, so it is not significantly more valuable than predicted by PPP. The boliviano and dinar are not included in the table and therefore cannot be considered for this question.

Table 12-1 -Refer to the Table 12-1.What Currency(ies)is(are)more Valuable Than Predicted by Valuable