Which of the Following Does Purchasing-Power Parity Imply

question 55

Multiple Choice

Which of the following does purchasing-power parity imply?

• A)The purchasing power of the dollar is the same in the U.S.as in foreign countries.
• B)The price of domestic goods relative to foreign goods cannot change.
• C)The nominal exchange rate is the ratio of U.S.prices to foreign prices.
• D)All of the above are correct.

Understand the application of blogs in customer education and engagement.

Evaluate the interactivity of business blogs and their role in generating discussions.

Explain the practice of tagging in blogs and its advantages for content discoverability.

Discern the effective and less effective uses of blogs in business communication.

---

Definitions:

Inflation Rate

The rate at which the general level of prices for goods and services is rising, thereby eroding purchasing power.

Real Terms

Refers to economic indicators or values that have been adjusted for inflation, allowing for the comparison of quantities as if prices had not changed over time.

Deposits

Funds placed into an account at a financial institution for safekeeping, which may earn interest over time depending on the account type.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) periodically until the maturity date, at which point the principal amount is repaid.