Suppose the Exchange Rate Between the U

question 16

Multiple Choice

Suppose the exchange rate between the U.S.dollar and the Japanese yen is initially 90 yen per dollar.According to relative purchasing-power parity,if the price of traded goods rises by 10 percent in the United States and remains constant in Japan,the exchange rate will become:

• A) 72 yen per dollar
• B) 81 yen per dollar
• C) 99 yen per dollar
• D) 108 yen per dollar

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Definitions:

Malleus

A small bone in the middle ear that transmits sound vibrations from the eardrum to the incus.

Stapes

The smallest bone in the human body, located in the middle ear, and is involved in transmitting sound vibrations to the inner ear.

Incus

Also known as the anvil, it is one of the three small bones in the middle ear that helps to transmit sound vibrations from the eardrum to the inner ear.

Cochlear Nerve

A nerve responsible for transmitting auditory information from the cochlea of the inner ear to the brain.