If purchasing power parity were to hold even in the short run, then
A. real exchange rates should tend to decrease over time
B. quoted nominal exchange rates should be stable over time
C. real exchange rates should tend to increase over time
D. real exchange rates should be stable over time
Answer: Option B
Related Questions on International Finance and Treasury
A. The British Pound
B. The Japanese Yen
C. The Spanish Peso
D. The US Dollar
Not a profit maximizing business is
A. International Monetary Fund
B. International bank for Reconstruction and Development
C. International Financial Corporation
D. World Trade Organisation
A. Merchandise Payment
B. Service Payment
C. Factory Income
D. Transfer payment
Nations that have major economic expansion attract
A. Imports
B. Direct Foreign Investment
C. Exports
D. Privatization
Join The Discussion