To Express the PPP Theory in Symbols,let P_$ Be the U.S.dollar

question 4

Multiple Choice

To express the PPP theory in symbols,let P_$ be the U.S.dollar price of a basket of particular goods and P_× be the price of the same basket of goods in Japanese yen.What does the purchasing power parity (PPP) theory predict to be the equivalent of the dollar/yen exchange rate,E_$/×?

• A)E_$/× = (1 + P_×)/P_$
• B)E_$/× = (1 + P_$)/P_×
• C)E_$/× = P_×/P_$
• D)E_$/× = P_$/P_×
• E)E_$/× = (1 + P_$)/(1 + P_×)

---

Definitions:

Acetylcholine

A neurotransmitter and chemical that motor neurons of the nervous system release in order to activate muscles.

Secretion

The process by which substances are produced and discharged from a cell, gland, or organ for a particular function in the organism or for excretion.

Terminal Cisternae

Enlarged areas of the sarcoplasmic reticulum around the myofibrils of muscle cells, involved in calcium ion storage.

T-tubules

Tubular extensions of the plasma membrane that penetrate into the center of skeletal and cardiac muscle cells, facilitating the transmission of electrical impulses.