In this difficult times we are facing, is the Big Mac a good or bad measure of purchasing power parity

Q: What is Purchasing power parity Theory.

A: the Purchasing Power Parity (PPP) is an estimation that economists specialists use to look at the…

Q: What are the benefits of having a fixed exchange rate?

A: Fixed exchange rate system refers to the one in which the value of a currency is pegged with another…

Q: Explain The relationship between purchase power parity and finance

A: PPP is an abbreviation for purchasing power parity, it is one way to measure exchange rates between…

Q: Explain why the Cedi continues to depreciate against most major international currencies.

A: Currency depreciation is the decrease in the value of a country's currency in relation to one or…

Q: describe some of the reasons for deviation in exchange power parit

A: Exchange power parity is a method through which changes in the currencies of different countries are…

Q: How can exchange-rate targets lead to a speculativeattack on a currency?

A: The exchange rate targeting is the method by which a central bank intervenes in the market in order…

Q: Evaluate how an appreciating US Dollar could hurt an economy

A: Appreciation is the rise in the value of a country's currency with respect to other country.…

Q: Find out any three saarc countries and find out their nominal exchange rate?

A: South Asian Association for Regional Cooperation (SAARC)  It is an intergovernmental organization…

Q: Why should Purchasing Power Parity hold in the long run? Also, why is it that Purchasing Power…

A: The purchasing power parity theory explains the exchange rate of two currencies that will be equal…

Q: Explain why the Cedi continues to depreciate against most major international currencies and offer…

A: Currency depreciation, which often occurs under a floating exchange rate system when no official…

Q: A country is always worse off when its currency isweak (falls in value).” Is this statement true,…

A: This statement is false. A weak currency has a negative effect on purchase of goods and services…

Q: How can emerging market economies avoid theproblems of currency mismatch

A: Answer - Emerging market economies avoid the problem of currency mismatch in many ways :- 1.By…

Q: How does a fall in the exchange rate cause an increase in the cost of raw imported materials?

A: The import and export of a country are affected by the exchange rates.

Q: Why is the Chinese Yuan depreciating against the US dollar now?

A: Currency depreciation signifies the drop in the value of the currency, where the comparison is made…

Q: How do international investment activities affect exchange rates?

A: Exchange rate refers to the amount of domestic currency that requires to buy one unit fo foreign…

Q: Why can you not borrow more foreign currency in a fixed exchange rate system?

A: A fixed exchange rate system, also defined as a pegged exchange rate, is the one in which currency's…

Q: If a bushel of wheat costs $10 in the United States and 5 pounds in the United Kingdom, the long run…

A: The long run exchange rate is the rate at which two currencies can be exchanged for each other in…

Q: What are two ways in which monetary policies and tight budgets allow a fixed exchange rate system to…

A: the AA-DD model to portray the impacts of financial, monetary, and exchange rate policy under an…

Q: In the foreign exchange market, how does a change in expected future U.S. exchange rate affect the…

A: Exchange rate can be defined as the rate which defines the value of one currency in terms of another…

Q: what does it mean to say that a currency appreciates? Depreciates? Becomes stronger? Becomes weaker

A: Currency is known as the medium of exchange. It is accepted as a form of payment and is famous for…