The Purchasing Power Parity (PPP)theory Says That in the Long

question 80

Multiple Choice

The purchasing power parity (PPP) theory says that in the long run,the exchange rate between two currencies should move toward _____ the _____ in each country of an identical basket of internationally traded goods.

• A)equalizing;cost
• B)minimizing;price
• C)maximizing;cost
• D)maximizing;price
• E)minimizing;cost

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Definitions:

Controlling

is one of the four major functions of management, focusing on monitoring performance and making adjustments to achieve goals.

Upside-Down Pyramid

A view of organizations that shows customers at the top being served by workers who are supported by managers.

Customers

Individuals or organizations that purchase goods or services from a business or seller.

Top Managers

The highest echelon of leaders within an organization, responsible for strategic decision-making and overall direction of the company.