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ellehaine24 ellehaine24
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5 years ago
Suppose the GDP deflator in the United States is 125 and the GDP deflator in Japan is 100. Also assume the United States has trade barriers on Japanese goods in the form of quotas. What does this imply about the exchange rate of yen per dollar under the theory of purchasing power parity in the long run?  
A) The exchange rate of yen per dollar will be equal to 1.25.
B) The exchange rate of yen per dollar will be greater than 0.8.
C) The exchange rate of yen per dollar will be equal to 0.8.
D) The exchange rate of yen per dollar will be Answer: n 0.8.
Textbook 
InMacro

InMacro


Edition: 1st
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steski89steski89
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ellehaine24 Author
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5 years ago
Thank you, thank you, thank you!
bioc
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
Smair87
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2 hours ago
This calls for a celebration Person Raising Both Hands in Celebration
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