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ss7ja [257]
3 years ago
15

According to purchasing-power parity, if it took 58 Indian rupees to buy a dollar today, but it took 55 to buy it a year ago, th

en the dollar has:
Business
1 answer:
oksano4ka [1.4K]3 years ago
3 0

Answer:

Given that,

Current exchange rate between India and U.S :

1 Dollar = Rs. 58

Exchange rate between India and U.S a year ago :

1 Dollar = Rs. 55

Above information conclude that the currency of India depreciates whereas  currency of united states appreciates.

This is due to the increase in the exchange rate in India. Now, a dollar become more expensive than it a year ago.

So, the Indian rupee depreciated and U.S dollar appreciated.

 

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Answer:

Explanation Below.

Explanation:

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In the late 1970s Federal Reserve Chairman Paul Volcker contracted the money supply to reduce the rate of inflation. One result
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Since the money supply was contracted to reduce the rate of inflation, this will lead to increase interest rates which reduced aggregate demand.

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Answer: The relationship between A and B project cannot be determined with the information given.

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