Prices in Both the U

question 24

Multiple Choice

Prices in both the U.S.and China rise,but prices in China increase by a larger percentage.According to purchasing-power parity,the U.S.dollar

• A)gains value both in terms of the domestic goods and services it can buy and in terms of the Chinese currency it can buy.
• B)gains value in terms of the domestic goods and services it can buy,but loses value in terms of the Chinese currency it can buy.
• C)loses value in terms of the domestic goods and services it can buy,but gains value in terms of the Chinese currency it can buy.
• D)loses value both in terms of the domestic goods and services it can buy and in terms of the Chinese currency it can buy.

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Definitions:

Managerial Department

A department within an organization responsible for making management decisions, overseeing operations, and developing strategies.

Cash Budget

is a financial plan that estimates cash inflows and outflows over a specific period of time, often used for managing liquidity and ensuring financial stability.

Inflows And Outflows

Terms referring to the movement of money into and out of a business or account, representing income and expenses or investments and withdrawals, respectively.

Sales Budget

A sales budget estimates the amount of revenue a company expects to earn from sales over a specific period, serving as a planning and control tool for managing operations.