Multiple Choice
If a dollar buys more rice in the China.than in the U.S. ,then
A) the real exchange rate is greater than 1;a profit might be made by buying rice in the U.S.and selling it in China.
B) the real exchange rate is greater than 1;a profit might be made by buying rice in China.and selling it in the U.S.
C) the real exchange rate is less than 1;a profit might be made by buying rice in the U.S.and selling it in China.
D) the real exchange rate is less than 1;a profit might be made by buying rice in China and selling it in the U.S.
Correct Answer:
Verified
Correct Answer:
Verified
Q21: Suppose a Starbucks tall latte costs $4.00
Q22: If purchasing-power parity holds,a bushel of rice
Q23: According to the doctrine of purchasing-power parity,which
Q24: Prices in both the U.S.and China rise,but
Q25: According to purchasing-power parity,if the same basket
Q27: If the Kenyan nominal exchange rate declines,and
Q28: According to purchasing-power parity,if over the course
Q29: A tall latte in China costs 30
Q30: According to purchasing-power parity,if the price of
Q31: A basket of goods cost $800 in