1. Purchasing-power parity implies that the nominal exchange rate given as foreign currency per unit of home currency must rise if the price levels in a. foreign countries rise. c. both countries rise. b. the prices in the home country rise. d. both countries fall.

1. Purchasing-power parity implies that the nominal exchange rate given as foreign currency per unit of home currency must rise if the price levels in a. foreign countries rise. c. both countries rise. b. the prices in the home country rise. d. both countries fall.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1.
Purchasing-power parity implies that the nominal exchange rate given as foreign currency
per unit of home currency must rise if the price levels in
a. foreign countries rise.
C. both countries rise.
b. the prices in the home country rise.
d. both countries fall.

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