If the GDP Deflator in Canada Is 114, and the GDP

question 224

Multiple Choice

If the GDP deflator in Canada is 114, and the GDP deflator in Ukraine is 142, which of the following exchange rates would the theory of purchasing power parity predict in the long run? (The Ukrainian currency is the hryvnia.)

• A)0.25 hryvnias per dollar
• B)0.80 hryvnias per dollar
• C)1.25 hryvnias per dollar
• D)2.80 hryvnias per dollar
• E)28 hryvnias per dollar

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A group of people who are inclined to doubt or question the validity of information presented to them.

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