The Theory of PPP Suggests That If One Country's Price

question 91

Multiple Choice

The theory of PPP suggests that if one country's price level falls relative to another's,its currency should

• A)depreciate.
• B)appreciate.
• C)float.
• D)do none of the above.

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Definitions:

Tundra

A cold, treeless biome found in the Arctic and atop mountains, where the climate is characterized by very low temperatures, short growing seasons, and permafrost.

Permafrost

Permanently frozen subsoil characteristic of frigid areas such as the tundra.

Growing Season

The growing season is the period of the year when weather conditions are favorable for plant growth, typically characterized by sufficient warmth and moisture.

Tropical Rain Forest

A dense, warm, wet biome found near the Equator, known for its vast biodiversity.