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

Question

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

Quizplus · Accepted Answer

The boliviano is less valuable than predicted by the purchasing-power parity theory because its actual exchange rate is lower than its predicted exchange rate.