According to Purchasing Power Parity, If It Takes Five Times

question 149

Multiple Choice

According to purchasing power parity, if it takes five times as many Russian rubles to buy a basket of goods in Russia as it takes U.S. dollars to buy a basket of goods in the United States, then:

• A) the equilibrium exchange rate should be five rubles per dollar.
• B) there is a lower rate of inflation in Russia than in the United States.
• C) the equilibrium exchange rate should be one ruble per five dollars.
• D) the law of one price no longer holds.

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Definitions:

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for problem solving, judgment, motor function, and speech among other functions.

Voluntary Movement

Voluntary movement involves conscious control over muscle movements, enabling actions such as walking, talking, or picking up objects.

Association Areas

Regions of the cerebral cortex that integrate information from various parts of the brain to perform higher functions such as thinking, learning, and remembering.

Convolutions

Refers to the folds and wrinkles found in the cerebral cortex of the brain that increases its surface area.