According to Purchasing Power Parity,which of the Following Is FALSE

question 27

Multiple Choice

According to purchasing power parity,which of the following is FALSE about an overvalued dollar compared to the Japanese yen?

• A)U)S.merchants would be motivated to import more Japanese goods.
• B)Japanese merchants would tend to export more to the United States.
• C)Prices in the United States would tend to fall.
• D)Over the long term,the exchange rate would fall.
• E)Prices in Japan would tend to rise.

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Definitions:

Depression

A psychiatric condition characterized by an ongoing low mood or a decrease in pleasure in tasks, severely affecting life on a day-to-day basis.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often accompanied by physical symptoms.

Dissociation

Process whereby different facets of an individual’s sense of self, memories, or consciousness become split off from one another.

Catatonic

A behavioral syndrome marked by an inability to move normally, which can include motor immobility and excessive motor activity.