Purchasing power parity or PPP says the ratios composed of:
a. interest rates explain the direction of exchange rates.
b. growth rates explain the direction of exchange rates.
c. inflation rates explain the direction of exchange rates.
d. services explain the direction exchange rates.
e. public opinion polls explain the direction of exchange rates.
QUESTION 2Which of the following is a feature of an M-Form organization?
a. divisions have difficulty responding to changes in customer demand
b. it is difficult to maintain customer relationships
c. there is less coordination across the firm's divisions
d. evaluating employees is easier because managers typically are similarly trained
QUESTION 3A perfectly competitive industry has
a. A perfectly elastic demand curve
b. A perfectly elastic supply curve
c. A downward sloping demand curve
d. A downward sloping supply curve
QUESTION 4If the British pound () appreciates by 10 against the dollar:
a. both the US importers from Britain and US exporters to Britain will be helped by the appreciating pound.
b. the US exporters will find it harder to sell to foreign customers in Britain.
c. the US importer of British goods will tend to find that their cost of goods rises, hurting its bottom line.
d. both US importers of British goods and exporters to Britain will be unaffected by changes in foreign exchange rates.
e. all of the above.
QUESTION 5Which of the following is a feature of an M-Form organization?
a. divisions have difficulty responding to changes in customer demand
b. it is easier to maintain customer relationships
c. coordination across divisions is simple and does not take much management time
d. evaluating employees is easier because managers typically are similarly trained
QUESTION 6A perfectly competitive firm has
a. A perfectly elastic demand curve
b. A perfectly elastic supply curve
c. A downward sloping demand curve
d. A downward sloping supply curve
QUESTION 7Using demand and supply curves for the Japanese yen based on the / price for yen, an increase in US INFLATION RATES would
a. Decrease the demand for yen and decrease the supply of the yen.
b. Increase the demand for yen and decrease the supply of the yen.
c. Increase the demand and increase the supply of yen.
d. Decrease both the supply and the demand of yen.
e. Have no impact on the demand or supply of the yen.
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