Suppose Individuals Wish to Obtain the Most Accurate Comparison of Living

question 60

Multiple Choice

Suppose individuals wish to obtain the most accurate comparison of living standards between the Canada and Saudi Arabia.To do so,one would convert Saudi Arabian output into dollars using

• A)the current nominal exchange rate.
• B)the current real exchange rate.
• C)the prior year's real exchange rate.
• D)an average of the last five years' exchange rates.
• E) purchasing power parity methods.