Economics Mcqs
Q Assume that the United States faces a percent inflation rate while no (zero) inflation exists in Japan. According to the purchasing power parity theory over the long run the dollar would be expected to ?
  • A A. Appreciate by 8 percent against the yen
  • B B. Depreciate by 8 percent against the yen
  • C C. Remain at its existing exchange rate
  • D NonE of the above
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