When PPP Does Not Hold in the Short Run, Economists

question 45

Multiple Choice

When PPP does not hold in the short run, economists have developed an alternative short-run explanatory theory based on the idea that:

• A) currency values are different from other prices, since currencies are not considered assets.
• B) currency values are influenced in the short run because they serve as short-term assets.
• C) currency values will eventually result in PPP over time, so no short-run theory is needed.
• D) currency values are set by government entities and the IMF so the value often does not result in PPP.

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Definitions:

Lane Theological Seminary

A historically significant religious institution in Cincinnati, Ohio, known for its debates on slavery and abolition in the 1830s, which had a profound impact on the anti-slavery movement.

Oberlin College

A private liberal arts college in Oberlin, Ohio, notable for being the first college in the United States to regularly admit female and African American students.

Antislavery Activism

Efforts and movements dedicated to ending the practice of slavery and emancipating slaves.

The Liberator

A notable antislavery newspaper founded by William Lloyd Garrison in 1831, advocating for the immediate emancipation of all slaves.