In the Long Run

question 10

Multiple Choice

In the long run

• A) exchange rates obey relative PPP when all disturbances occur in the output markets.
• B) exchange rates obey absolute PPP when all disturbances occur in the output markets.
• C) exchange rates are unlikely to obey relative PPP when all disturbances occur in the output markets.
• D) exchange rates are unlikely to obey relative PPP when all disturbances are monetary in nature.
• E) exchange rates obey absolute PPP when all disturbances are monetary in nature.

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Definitions:

Social Responsibility Initiatives

Programs or actions taken by a company to benefit society, including charitable efforts, sustainability projects, and ethical business practices.

Corporate Social Performance

How a company manages its social responsibilities, impacting stakeholders and contributing to sustainable development.

Virtuous Circle

A chain of positive events that reinforce themselves through a feedback loop, leading to further beneficial outcomes.

Rationalization

The process of offering a logical or reasonable explanation for behaviors or decisions that might otherwise appear irrational.