Which of the Following Does Purchasing-Power Parity Conclude Should Equal

question 45

Multiple Choice

Which of the following does purchasing-power parity conclude should equal 1?

• A)both the nominal and the real exchange rate.
• B)the nominal exchange rate but not the real exchange rate
• C)the real exchange rate but not the nominal exchange rate
• D)neither the nominal exchange rate nor the real exchange rate

---

Definitions:

1930s

A decade spanning from the year 1930 to 1939, often associated with major economic turmoil due to the Great Depression.

1940s

A decade in the 20th century, notable for events such as World War II and the beginning of significant social and technological changes.

1950s

A decade in the 20th century characterized by post-World War II recovery, economic prosperity, and significant cultural and technological developments.

1960s

A decade marked by significant social, political, and cultural change, influencing various sectors including civil rights, music, and technology.