If the Absolute PPP Suggest That the Dollar to Pound

question 19

Multiple Choice

If the absolute PPP suggest that the dollar to pound should be 1.88 and the actual exchange rate in London is 2.50 $/pound,then:

• A) The British pound is overvalued.
• B) The U.S. dollar is overvalued
• C) The British pound is undervalued
• D) Exchange rates and absolute PPP are unrelated.

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Definitions:

iPhones

A line of smartphones designed and marketed by Apple Inc. that run on iOS.

Correct Helping Verb

A correct helping verb is a verb that accurately complements the main verb in a sentence to form a verb tense, mood, or voice, such as "have" in "have gone".

Angela

A common female given name of Latin origin, meaning "angel" or "messenger of God."

Correct Helping Verb

A verb that aids the main verb in a sentence to clarify tense, mood, or voice.