According to the Principle of Purchasing Power Parity,the 2001 Devaluation

question 145

Multiple Choice

According to the principle of purchasing power parity,the 2001 devaluation of the Argentine peso:

• A) increased the inflation rate in Argentina relative to the inflation rate in Canada.
• B) made Argentine imports from Canada cheaper.
• C) decreased the inflation rate in Argentina relative to the inflation rate in Canada.
• D) had no impact on the Argentine inflation rate.

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Definitions:

Means-End Analysis

A problem-solving strategy that involves breaking down a problem into smaller problems and solving each one to reach an overall goal.

Working Backwards

A problem-solving strategy that involves starting from the desired outcome and working in reverse order to determine the steps needed to achieve that goal.

Mental Set

The tendency to apply a familiar strategy to the solution of a problem without carefully considering the special requirements of that problem.

Overhead Projector

An optical device used to project images onto a screen, typically for presentations or educational purposes.