Which of the Following Events Would Be Consistent with Purchasing-Power

question 83

Multiple Choice

Which of the following events would be consistent with purchasing-power parity?

• A)The price level in the United States rises more rapidly than that in Ireland and the real exchange rate defined as Irish goods per unit of U.S.goods stays the same.
• B)The money supply in the United States rises more rapidly than in Egypt and the nominal exchange rate defined as Egyptian pounds per dollar falls.
• C)Earl,a worldwide traveler,looks at exchange rates and worldwide breakfast prices one morning and finds that whatever country he decides to go to he can convert $15 into enough local currency to buy the same breakfast.
• D)All of the above are correct.

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Definitions:

Agreeableness-conscientiousness

Personality traits that describe a person's general disposition to be cooperative, easy to get along with (agreeableness), and well-organized, responsible, and reliable (conscientiousness).

Extraversion-introversion

A personality trait spectrum where extraversion is characterized by sociability and outgoingness, and introversion by a preference for solitude and internal experiences.

Introversion

Introversion is a personality trait characterized by a preference for solitary activities and environments that are not overly stimulating; introverts often recharge by spending time alone.

Shyness

A personality trait characterized by feelings of apprehension, discomfort, or inhibition in social situations.