Table 1 shows information for exchange rates and price indexes for different countries and for the...

 

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Table 1 shows information for exchange rates and price indexes for different countries and for the U.S. Country Currency Table 1 Currency per U.S. Price U.S. Dollar Index Country Price Index Bolivia Boliviano 8.00 200 1600 Japan Yen 80.00 200 20,000 Morocco Dinar 10.00 200 2,000 Norwegian Thailand Kroner 6.5 200 1,500 Baht 40.00 200 7,000 4.1. Refer to table 1. For which country(ies) in the table does purchasing-power parity hold? a. Bolivia and Japan b. Bolivia and Morocco c. Japan and Morocco d. Norway and Thailand 4.2. Refer to table 1. Which currency(ies) is (are) less valuable than predicted by the doctrine of purchasing-power parity? a. boliviano and dinar b. yen and kroner c. baht and kroner d. Baht 4.3. Refer to table 1. Which currency(ies) is (are) more valuable than predicted by the doctrine of purchasing-power parity? a. boliviano and dinar b. yen, kroner, and baht c. yen and kroner d. Baht 4.4. Refer to table 1. In real terms, U.S. goods are more expensive than goods in which country(ies)? a. Bolivia and Morocco b. Japan, Norway, and Thailand c. Japan and Norway d. Thailand 4.5. Refer to table 1. In real terms, U.S. goods are less expensive than goods in which country(ies)? a. Bolivia and Morocco b. Japan, Norway, and Thailand c. Japan and Norway d. Thailand Table 1 shows information for exchange rates and price indexes for different countries and for the U.S. Country Currency Table 1 Currency per U.S. Price U.S. Dollar Index Country Price Index Bolivia Boliviano 8.00 200 1600 Japan Yen 80.00 200 20,000 Morocco Dinar 10.00 200 2,000 Norwegian Thailand Kroner 6.5 200 1,500 Baht 40.00 200 7,000 4.1. Refer to table 1. For which country(ies) in the table does purchasing-power parity hold? a. Bolivia and Japan b. Bolivia and Morocco c. Japan and Morocco d. Norway and Thailand 4.2. Refer to table 1. Which currency(ies) is (are) less valuable than predicted by the doctrine of purchasing-power parity? a. boliviano and dinar b. yen and kroner c. baht and kroner d. Baht 4.3. Refer to table 1. Which currency(ies) is (are) more valuable than predicted by the doctrine of purchasing-power parity? a. boliviano and dinar b. yen, kroner, and baht c. yen and kroner d. Baht 4.4. Refer to table 1. In real terms, U.S. goods are more expensive than goods in which country(ies)? a. Bolivia and Morocco b. Japan, Norway, and Thailand c. Japan and Norway d. Thailand 4.5. Refer to table 1. In real terms, U.S. goods are less expensive than goods in which country(ies)? a. Bolivia and Morocco b. Japan, Norway, and Thailand c. Japan and Norway d. Thailand

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41 Purchasing power parity PPP holds when the exchange rate between two currencies adjusts to ensure that a basket of goods and services has the same ... View the full answer