MCQ Hive stays free thanks to ads. Please disable your ad blocker for this site so content and features keep working.
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 ?
AA. Appreciate by 8 percent against the yen
BB. Depreciate by 8 percent against the yen
CC. Remain at its existing exchange rate
DNonE of the above
Correct Answer:
B. B. Depreciate by 8 percent against the yen