If Purchasing Power Parity Existed in Foreign Exchange Rates

question 14

Multiple Choice

If purchasing power parity existed in foreign exchange rates,

• A) foreign exchange rates would remain constant.
• B) goods and services would cost the same in terms of dollars everywhere in the world.
• C) goods and services would cost the same in each local currency.
• D) foreign exchange rates would be the same anywhere in the world markets.

---

Definitions:

Attitudes

Psychological constructs represented by evaluations of people, objects, or ideas with some degree of favor or disfavor.

Beliefs

The acceptance that something exists or is true, especially without proof.

Stress

A psychological and physical response to challenges or demands that can be caused by both positive and negative experiences.

Ethical Values

Fundamental beliefs or principles considered to guide behaviors and decisions in a moral and upright manner.