Description of this paper

If the purchasing power of the dollar is greater than the purchasing power of the euro

Description

solution


Question

If the purchasing power of the dollar is greater than the purchasing power of the euro, purchasing power parity predicts that the exchange rate will;which of the following out of the choices are correct? (A. B. C. or D.);A. be equal to the relative purchasing power across the currencies in the long run.;B. increase if the exchange rate is greater than 1 euro per dollar.;C. decrease if the exchange rate is less than 1 euro per dollar.;D. All of the above are correct.

 

Paper#24667 | Written in 18-Jul-2015

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