Prices in Both the U

question 46

Multiple Choice

Prices in both the U.S.and India rise,but prices in India increase by a smaller 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 Indian 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 Indian 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 Indian currency it can buy.
• D)loses value both in terms of the domestic goods and services it can buy and in terms of the Indian currency it can buy.

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