If the Exchange Rate Equals the Ratio of Price Indexes

question 51

Multiple Choice

If the exchange rate equals the ratio of price indexes in two countries, there is said to be

• A)one price fits all.
• B)absolute purchasing-power parity.
• C)relative purchasing-power parity.
• D)interest-rate parity.

---

Definitions:

Ossification Centers

Locations in the fetus where bone formation begins during the process of ossification, leading to the development of the skeletal system.

Medullary Cavity

The central cavity of bone shafts where red bone marrow and/or yellow bone marrow (fat) is stored; it is crucial for the formation of blood cells.

Intramembranous Ossification

Intramembranous ossification is a process by which bone tissue is created directly from fibrous connective tissue, as seen in the formation of the flat bones of the skull.

Diaphysis

Shaft of a long bone.