If Purchasing-Power Parity Holds,when a Country's Central Bank Decreases the Money

question 1

Multiple Choice

If purchasing-power parity holds,when a country's central bank decreases the money supply,its

• A)price level rises and its currency appreciates relative to other currencies in the world.
• B)price level falls and its currency appreciates relative to other currencies in the world.
• C)price level rises and its currency depreciates relative to other currencies in the world.
• D)price level falls and its currency depreciates relative to other currencies in the world.

---

Definitions:

Yoruba Philosophy

A system of thought native to the Yoruba people of West Africa, characterized by its rich oral tradition, emphasis on community, and concepts of destiny, the spiritual world, and ethical living.

Metaphysical Libertarianism

A philosophical position in the debate on free will which suggests that free will is compatible with metaphysics and that individuals have the power to choose between different possible courses of action unimpeded.

Political Libertarianism

A branch of libertarianism focused on reducing government intervention in personal and economic matters to enhance freedom and autonomy.

Negative Freedom

The concept of freedom defined by the absence of constraints or interference from others, emphasizing what individuals are free from.