If the Purchasing Power of a Dollar Is Greater Than

question 41

Multiple Choice

If the purchasing power of a dollar is greater than the purchasing power of the yen, purchasing power parity would predict that

• A)in the short run, exchange rates will move to equalize the purchasing power of the dollar and the yen.
• B)in the long run, exchange rates will move to equalize the purchasing power of the dollar and the yen.
• C)in the long run, interest rates will move to equalize the purchasing power of the dollar and the yen.
• D)in the short run, interest rates will move to equalize the purchasing power of the dollar and the yen.
• E)in the short run, Canada will grow more quickly than Japan.

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Definitions:

Prelinguistic Vocalizations

Sounds made by infants before they acquire language, such as cooing and babbling.

Babbling

A stage in child language acquisition during which an infant spontaneously utters nonsensical sounds, often combining consonants and vowels, like "ba ba" or "da da."

Cooing

The early vocalization stage of human infancy, where babies produce soft, vowel-like sounds as a precursor to language development.