If Purchasing Power Parity Holds, the Price Level in the U.S

question 376

Multiple Choice

If purchasing power parity holds, the price level in the U.S. is 120, and the price level in Canada is 140, which of the following is true?

• A)the real exchange rate is 120/140.
• B)the real exchange rate is 140/120.
• C)the nominal exchange rate is 120/140
• D)the nominal exchange rate is 140/120

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Definitions:

Empathy

The capacity to understand or feel what another person is experiencing from within their frame of reference.

Prosocial Behavior

Voluntary actions intended to benefit or help others, such as sharing, comforting, or rescuing.

Sympathy

Feelings of pity or sorrow for someone else's misfortune.

Temperament

Refers to the innate aspects of an individual's personality, such as their tendency towards certain moods or behaviors.