According to Purchasing-Power Parity,if Over the Course of a Year

question 54

Multiple Choice

According to purchasing-power parity,if over the course of a year the price level in the U.S.rises more than in Japan,then which of the following falls?

• A)the U.S.real exchange rate,but not the U.S.nominal exchange rate
• B)the U.S.nominal exchange rate,but not the U.S.real exchange rate
• C)the U.S.nominal exchange rate and the U.S.real exchange rate
• D)neither the real exchange rate nor the nominal exchange rate

---

Definitions:

IT Person

An individual who works with information technology, focusing on the management, operation, and maintenance of computing and networking systems.

VoIP

Voice over Internet Protocol, a technology that allows for voice communications and multimedia sessions over Internet Protocol networks.

Digital Phone

A telephone that uses digital signals to transmit voice communications, as opposed to traditional analog telephones.

Wired Network

A type of network where devices are connected using cables, offering more stability and security compared to wireless connections.