Multiple Choice
If the U.S. price level is increasing by 3 percent annually and the Swiss price level is increasing by 2 percent annually, by about what percent would the price of a dollar in terms of Swiss francs need to change according to purchasing power parity?
A) decrease by 5 percent
B) decrease by 1 percent
C) increase by 5 percent
D) increase by 1 percent
Correct Answer:
Verified
Correct Answer:
Verified
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