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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.
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InMacro

InMacro


Edition: 1st
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steski89steski89
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5 years ago
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ellehaine24 Author
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5 years ago
Smart ... Thanks!
terriroberts96
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Yesterday
Brilliant ツ
acaruso
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2 hours ago
Correct Slight Smile TY
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