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SOVA2 [1]
4 years ago
12

PPP Explain the theory of purchasing power parity (PPP). Based on this theory, what is a general forecast of the values of curre

ncies in countries with high inflation?
Business
1 answer:
jasenka [17]4 years ago
4 0

Answer: The theory of "Purchasing Power Parity" states that the exchange rates between the different currencies must be such that it allows a currency to have the same purchasing power anywhere in the world.

If you can buy a television with 1,000 dollars in the United States, with those same 1,000 dollars you should also be able to buy in Spain, or in Japan.

When a country maintains high levels of inflation, for a long period of time, the increase in the price of goods is nothing more than a fall in the value of its currency. Therefore, it is reasonable for your currency to depreciate against currencies of other countries as well.

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3 years ago
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Make sure the lease has a bail-out clause that releases the tenant from the lease if sales fall short of a predetermined level before signing it for a retail space.

<h3>What is a bailout? What are the justifications for bailing out companies?</h3>

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Profit is occasionally a driving force behind bailouts. For instance, if they purchase the extremely discounted shares of a failing company, investors may sense an opportunity. However, it's possible that the objective is charitable. An unsuccessful company may be revived by philanthropists and transformed into a non-profit entity.

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4 0
2 years ago
Xunder the original constitution, congress could not ban the slave trade until ________.
True [87]

The Original Constitution meant that Congress could not ban the slave trade until 1808.

<h3>When did Congress ban the slave trade?</h3>

In the original Constitution of the United States, Northern states wanted to ban the slave trade but the South resisted.

They then came to a compromise where Congress would only ban the slave trade in 1808. This was contained in the Constitution in Article 1, Section 9. The domestic slave trade in the United States continued however.

Find out more on Congress banning the slave trade at brainly.com/question/24941610

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2 years ago
Which of the following is a general, sustained upward movement of prices for goods and services in an economy? a. Inflation b. E
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Inflation can be defined as rise in general price level.
Thus, answer is Inflation
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3 years ago
Im giving out free Brainlist cause its Friday ¯\_(ツ)_/¯
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