Suppose Purchasing Power Parity Holds

question 104

Multiple Choice

Suppose purchasing power parity holds.If the price level in the United States is 100 dollars per good and the price level in Japan is 250 yen per good,then the nominal exchange rate is ________ yen per dollar.

• A)0)25
• B)0)4
• C)2)5
• D)4)0

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Definitions:

CBT

Cognitive Behavioral Therapy, a psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic procedure.

Prozac

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Imaginary Voices

The auditory hallucination of hearing voices without an external source, often associated with psychiatric conditions such as schizophrenia.

Apathetic

Characterized by a lack of interest, enthusiasm, or concern.