The Theory of PPP Suggests That If One Country's Price

question 18

Multiple Choice

The theory of PPP suggests that if one country's price level falls relative to another's,its currency should

• A)depreciate in the long run.
• B)appreciate in the long run.
• C)appreciate in the short run.
• D)depreciate in the short run.

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Definitions:

Clinical Psychology

A branch of psychology concerned with diagnosing and treating mental, emotional, and behavioral disorders.

World War II

A global conflict lasting from 1939 to 1945, involving most of the world’s nations and most significant in the history of warfare in terms of human and material losses.

Psychological Disorders

Mental disorders comprising a range of psychological symptoms affecting an individual's cognitive, emotional, and social functioning.

Great Depression

A severe worldwide economic downturn in the 1930s, marked by massive unemployment, poverty, and widespread financial distress.