According to Purchasing Power Parity (PPP), Foreign Currency Exchange Rates

question 70

Multiple Choice

According to purchasing power parity (PPP) , foreign currency exchange rates between two countries adjust to reflect changes in each country's

• A)unemployment rates.
• B)export competitiveness.
• C)inflation rates.
• D)foreign exchange reserves.
• E)reserve requirements.

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Definitions:

Bushels

A unit of volume that is used in the United States for measuring agricultural products, such as grains.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input used, holding all other inputs constant.

Total Product Curve

A graphic representation showing how the total quantity of output of a firm changes as the quantity of an input is changed, holding all other inputs constant.

Marginal Product

The increase in output that results from adding one more unit of a specific input, holding all other inputs constant.