fewer US. dollars are needed to purchase foreign currency. transaction costs in
ID: 1120468 • Letter: F
Question
fewer US. dollars are needed to purchase foreign currency. transaction costs in international markets will decrease more U.S. dollars are needed to purchase foreign currency Oe. exports will become cheaper worldwide. Question 14 Not yet answered Points out of 1.00 P Flag question If the purchasing power parity theory were literaly troe: Select one a. the price of a Big Mac should be the different everywhare in the world the exchange rate should be the same between all the countries the price of a traded good should be the sme everywbare in the world. d. prices should tend toward equality with eochange rates we should ses some natices devaluing their cureacies relative to the U.S. dellas, whale other sations revaloe their eurrencies Question15Notyetnwered Points out of 1.00 F Flag question Table 20.1 shonws a curest accoant In the table balow,_is the balance on current accoust Table :0.1l et expocts of go OiExplanation / Answer
the price of a traded good should be the same everywhere in the world
the above is the answer
because it assumes exchange rates in purchasing power term.
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