Suppose Purchasing Power Parity Holds

question 8

Multiple Choice

Suppose purchasing power parity holds.If in 1997 the price level in the United States is 100,the price level in Japan is 10,000,and the nominal exchange rate is 100 yen per dollar,while in 1998 the price level in Japan rises to 10,500 and the nominal exchange rate rises to 105,then the price level in the United States in 1998 must be

• A)95.
• B)100.
• C)105.
• D)110.25.

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Definitions:

American Women

Denotes women who are citizens of or live in the United States, focusing on their societal roles, challenges, and contributions.

Experienced

Having knowledge or skill in a particular field, obtained through involvement in or exposure to that area over a period of time.

Gender-Gap

The disparity between genders in various aspects of life, including but not limited to earnings, education, health, and political representation.

Median Education

The middle value of the education level of a population when ordered from the lowest to highest level.