Suppose That the Current Spot Exchange Rate of U

question 15

Multiple Choice

Suppose that the current spot exchange rate of U.S. dollars for Russian rubles is $0.15/1ruble. The price of Russian-produced goods increases by 8 percent, and the U.S. price index increases by 3 percent.
-According to PPP, the 8 percent rise in the price of Russian goods relative to the 3 percent rise in the price of U.S. goods results in a(n)

• A)depreciation of the Russian ruble by 5 percent.
• B)depreciation of the Russian ruble by 6 percent.
• C)appreciation of the Russian ruble by 5 percent.
• D)appreciation of the Russian ruble by 6 percent.
• E)depreciation of the Russian ruble by 7 percent.

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Definitions:

Plasma Membrane

The plasma membrane is a semi-permeable lipid bilayer that encloses the cytoplasm of a cell, controlling the passage of substances in and out of the cell.

Intermediate Filament

Stable cytoskeletal element of animals and some protists; structurally supports cell membranes and tissues; also forms external structures such as hair.

Cytoskeletal Element

Component of the cytoskeleton, providing structure and shape to cells, and involved in cell division, movement, and transport of materials within the cell.

Centriole

In animal cells, a barrel-shaped organelle from which microtubules grow.