According to Purchasing-Power Parity, When a Country's Central Bank Decreases

question 56

Multiple Choice

According to purchasing-power parity, when a country's central bank decreases the money supply, a unit of money

• A)gains value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy.
• B)gains value in terms of the domestic goods and services it can buy, but loses value in terms of the foreign currency it can buy.
• C)loses value in terms of the domestic goods and services it can buy, but gains value in terms of the foreign currency it can buy.
• D)loses value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy.

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Definitions:

Operational Planning

The process of creating specific procedures and actions to achieve tactical goals and objectives within a short time frame.

Competitive Differentiation

Unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of customers.

Strategic Planning Process

The strategic planning process is a systematic approach used by an organization to envision its future and develop necessary procedures and operations to achieve that future.