20.       What does purchasing-power parity imply?

            a.         that real incomes should be the same in all countries

            b.         that the nominal exchange rates should be equal to 1 for all currencies

            c.          that the price of a standard hamburger should be the same everywhere

            d.         that the rent for an apartment should be the same everywhere

11.       What is the most likely effect of an appreciation of the Canadian real exchange rate on the quantity of Alberta beef demanded by French citizens?

            a.         French citizens will buy less of Alberta beef.

            b.         French citizens will buy more of Alberta beef.

            c.          The quantity of Alberta beef demanded by French citizens will not change because the nominal exchange rate has not changed.

d.         The quantity of Alberta beef demanded by French citizens will not change because it is the French real interest rate that matters for French citizens.

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c that the price of a standard hamburger should be the same ev... View the full answer