Purchasing-Power Parity Implies That the Nominal Exchange Rate Given as Foreign

question 79

Multiple Choice

Purchasing-power parity implies that the nominal exchange rate given as foreign currency per unit of U.S.currency must rise if the price level(s) in

• A)foreign countries rise.
• B)the United States rises.
• C)all countries rise.
• D)all countries fall.

---

Definitions:

Sonogram

An image formed using ultrasound waves, commonly used for checking fetal development during pregnancy.

Radiograph

An image produced on a sensitive plate or film by X-rays, gamma rays, or similar radiation, commonly called an X-ray.

CT Scan

A diagnostic imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

MRI

Magnetic Resonance Imaging, a medical imaging technique used to visualize internal structures of the body in detail.