The Price of a Basket of Goods Is $2000 in the U.S.If

question 68

Multiple Choice

The price of a basket of goods is $2000 in the U.S.If purchasing-power parity holds,and the dollar buys two units of some country's currency,then how many units of foreign currency does the same basket of goods cost in that country?

• A)4000
• B)2000
• C)1000
• D)None of the above are correct.

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Definitions:

Necessarily False

A statement or proposition that cannot be true under any circumstances.

Probably True

A statement or idea that is likely to be correct or accurate based on the available evidence.

Tautology

An expression or phrase that redundantly states the same concept in different words, effectively redundant in its logical or semantic content.

Grammatical Construction

The arrangement and relationship of words, phrases, and clauses in a sentence to convey meaning effectively.