Multiple Choice
Supposethe price of gold is $300 per ounce in the United States and 2,400 pesos per ounce in Mexico.If purchasing power parity holds then, if the price of oil is 200 pesos per barrel in Mexico, the price of oil is ______ per barrel in the United States.
A) $1,600
B) $80
C) $36
D) $25
Correct Answer:
Verified
Correct Answer:
Verified
Q6: Holding all else constant, a decrease in
Q12: If the exchange rate moves from 10
Q22: In an open economy, an increase in
Q32: A trade deficit occurs when:<br>A)exports exceed imports.<br>B)imports
Q39: In an open economy with a given
Q56: All else being equal, if the prospect
Q93: The major suppliers of U.S.dollars to the
Q95: When a U.S. oil company purchases oil
Q98: The real exchange rate is the:<br>A)price of
Q115: Easy monetary policy reduces the real interest