Because of Shifts in Preferences for Domestic or Foreign Goods

question 79

Multiple Choice

Because of shifts in preferences for domestic or foreign goods and because of the existence of trade barriers

• A)purchasing power parity's underlying assumption is not valid.
• B)the nominal exchange rate will fluctuate, but the real exchange rate will not.
• C)purchasing power parity will be accurate in predicting short-run fluctuations in exchange rates, but not in predicting long-run fluctuations.
• D)most national governments believe exchange rates should not be set by the market.

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Definitions:

Indian

A term referring to people from India or, historically and controversially, used to describe Indigenous peoples of the Americas.

Category

A classification or grouping based on shared characteristics or attributes.

Indian Allotment Act

Refers to several U.S. laws that allowed for the division of tribal lands into individually owned parcels, significantly impacting Indigenous sovereignty and land ownership.

Intentions

Plans or objectives that one intends to accomplish or achieve, reflecting a person's motivation and purpose.