Suppose That the Current Spot Exchange Rate of U

question 87

Multiple Choice

Suppose that the current spot exchange rate of U.S.dollars for Russian rubles is $0.15/1ruble.The price of Russian-produced goods increases by 8 percent, and the U.S.price index increases by 3 percent. According to PPP, the new exchange rate of Russian rubles to U.S.dollars is

• A)0.15.
• B)0.1425.
• C)0.141.
• D)0.1605.
• E)0.159.

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Definitions:

Rights

Fundamental entitlements or freedoms that are universally recognized and protected by law.

Rawls

A philosopher named John Rawls, known for his work on political philosophy and theories of justice, including the concept of "justice as fairness."

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Refers to single human beings, distinct from a group, class, or family.

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A hypothetical society governed by reason and logic, where policies and decisions are made based on rational thought and empirical evidence.