(Table: Exchange Rates and Prices) Suppose a Computer Costs $500

question 158

Multiple Choice

(Table: Exchange Rates and Prices) Suppose a computer costs $500 in the United States. According to the information provided, under conditions of PPP, the price of a computer should be ____ reals in Brazil.

• A) 2,200
• B) 1,200
• C) 1,100
• D) 550

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Definitions:

Corporate Income Tax

A tax imposed on the net income of corporations, which is calculated after deducting expenses from revenues.

Automatic Stabilizer

Economic policies and programs, like unemployment insurance, that automatically adjust to counteract economic fluctuations without further government action.

Deficit

The amount by which government expenditures exceed revenue over a particular period, leading to borrowing or debt.

Japan

An island nation in East Asia, known for its rich culture, technological advancements, and significant economic power.