If the USprice Level Is Increasing by 3 Percent Annually and the and the Swiss

question 84

Multiple Choice

If the U.S.price level is increasing by 3 percent annually and the Swiss price level is increasing by 2 percent annually,by about what percent would the price of Swiss francs in dollars need to change according to purchasing power parity?

• A) decrease by 5 percent
• B) decrease by 1 percent
• C) increase by 5 percent
• D) increase by 1 percent

---

Definitions:

Availability of Resources

The extent to which necessary or desired materials, information, support, or capital is accessible for use or consumption.

Achieving Goals

The process or act of identifying and working towards objectives, often involving planning, effort, and a focused approach.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, which leads to various forms of competition for resources.

Cumulative Social Effects

The accumulating impact of societal actions and behaviors over time, affecting future social structures, norms, and individual behaviors.