If Purchasing-Power Parity Holds,when a Country's Central Bank Increases the Money

question 58

Multiple Choice

If purchasing-power parity holds,when a country's central bank increases the money supply,its

• A)price level rises and its currency appreciates relative to other currencies in the world.
• B)price level rises and its currency depreciates relative to other currencies in the world.
• C)price level falls and its currency appreciates relative to other currencies in the world.
• D)price level falls and its currency depreciates relative to other currencies in the world.

---

Definitions:

Pecuniary Harm

Financial damage suffered by an individual or entity, referring to actual losses of money or property.

Economic Loss

A financial deficit suffered by a person or entity, often measured as the difference between actual earnings and expected earnings.

Trespass to Real Property

An unlawful entry onto land by a person without the permission of the owner, resulting in a legal violation.

Accidentally

Accidentally refers to an event happening by chance or without deliberate intent.