According to the Purchasing Power Parity Theory of Exchange Rates

question 89

Multiple Choice

According to the purchasing power parity theory of exchange rates:

• A)a dollar, when converted to other currencies at the prevailing flexible exchange rate, has the same purchasing power in various countries.
• B)in equilibrium, national currencies have equal value in terms of gold.
• C)the higher a nation's price level in terms of its own currency, the greater is the amount of foreign exchange it can obtain for a unit of its currency.
• D)all of the above are true.

---

Definitions:

Banded Gneissic Rock

A metamorphic rock characterized by alternating light and dark mineral bands, indicating high-grade metamorphism.

Mica Crystals

Minerals characterized by their sheet-like structure and ability to split easily along flat planes, commonly found in igneous and metamorphic rocks.

Shiny Aspect

Characteristic of reflecting light, typically because of a smooth, polished surface that appears bright or glistening.

Dull Slate

A type of metamorphic rock known for its dull appearance and fine-grained texture, typically used in roofing and flooring.