Prices in Both the U

question 19

Multiple Choice

Prices in both the U.S. and India rise, but prices in India 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 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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Definitions:

Financial Services

Industry sector including banking, investment, and insurance services designed to manage money.

British Blockade

A military strategy used by Britain, especially during the World Wars, to prevent the movement of enemy ships and goods, often by naval forces.

Transatlantic Purchases

Transactions involving the buying and selling of goods or services across the Atlantic Ocean, between Europe and the Americas.

Americanization Committee

A group or effort aiming to assimilate immigrants into American culture, promoting the adoption of American customs, language, and values among foreign-born residents.