If Purchasing-Power Parity Holds, Then Changes in Domestic Saving Will

question 27

Multiple Choice

If purchasing-power parity holds, then changes in domestic saving will _____ the real exchange rate.

• A) increase
• B) decrease
• C) not change
• D) either increase or decrease

---

Definitions:

E-cigarettes

Electronic devices that simulate tobacco smoking by producing an aerosol, often referred to as vapor, that users inhale.

Smoking

The act of inhaling and exhaling the smoke of tobacco or a drug, which has various health risks including respiratory diseases, heart disease, and cancer.

Dopamine Neurons

Specialized nerve cells that produce and release dopamine, a neurotransmitter that plays key roles in motivation, reward, and movement.

Nicotine

A potent, addictive substance found in tobacco, affecting the nervous system by mimicking the neurotransmitter acetylcholine.