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weeeeeb [17]
4 years ago
8

The price of a basket of goods is $2000 in the U.S. If purchasing-power parity holds, and the dollar buys two units of some coun

try’s currency, then how many units of foreign currency does the same basket of goods cost in that country?
a. 4000
b. None of the above are correct.
c. 1000
d. 2000
Business
1 answer:
Andru [333]4 years ago
8 0

Answer:

a. 4000

Explanation:

Let the new currency be represented by a variable "XD"

Using the U.S /foreign currency exchange rate, find the cost of the same basket in XD;

If 1 USD = 2XD

then 2,000 USD = 2,000*2

= 4,000 XD

Therefore, if you were to buy the same basket of goods in the foreign currency, you will spend 4,000 units. This makes choice A correct

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In the field of economics, the additional cost associated with one more unit of something is called a(n)?
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<h3>What is marginal cost.?</h3>

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3 0
2 years ago
) If product Light is processed further and sold, what would be the financial advantage (disadvantage) for Bodbbm177 Corporation
m_a_m_a [10]

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