If new sources of nickel are unexpectedly found in the United States,the dollar tends to ________ in a way ________ by the PPP theory of exchange rates.

Question

Quizplus · Accepted Answer

The discovery of new nickel sources would increase the supply of nickel, potentially boosting the U.S. economy and leading to an appreciation of the dollar. However, this is not directly predicted by the Purchasing Power Parity (PPP) theory, which focuses on price levels and inflation rates rather than resource discoveries.

If New Sources of Nickel Are Unexpectedly Found in the United