Answer to Question #62649 in Macroeconomics for Aurelio Sca

Question #62649
Imagine that the price level abroad is twice as high as in home (‘our’) country. mark correct statements.(several possible) (a) The (absolute) purchasing power parity equals 1. (b) The (absolute) purchasing power parity equals 1/2. (c) If E = 0.75 the home currency is undervalued. (d) If the home currency is undervalued it means that the same goods, on average, have higher prices abroad than in our country.
1
Expert's answer
2016-10-13T15:13:03-0400
(b) The (absolute) purchasing power parity equals 1/2.
(d) If the home currency is undervalued it means that the same goods, on average, have higher prices abroad than in our country.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal