The table below shows indexes for the price levels for Canada and the United States and the nominal exchange rate between their currencies (the Canadian-dollar price of 1 U.S.dollar).
TABLE 34-2
-Refer to Table 34-2.According to the theory of purchasing power parity (PPP),the Canadian-U.S.exchange rate in 2012 should have been ________,meaning that the actual Canadian dollar in that year was ________ relative to its PPP value.

Question

The table below shows indexes for the price levels for Canada and the United States and the nominal exchange rate between their currencies (the Canadian-dollar price of 1 U.S.dollar).
  TABLE 34-2
-Refer to Table 34-2.According to the theory of purchasing power parity (PPP),the Canadian-U.S.exchange rate in 2012 should have been ________,meaning that the actual Canadian dollar in that year was ________ relative to its PPP value.

Quizplus · Accepted Answer

The Answer of The table below shows indexes for the price levels for Canada and the United States and the nominal exchange rate between their currencies (the Canadian-dollar price of 1 U.S.dollar).
  TABLE 34-2
-Refer to Table 34-2.According to the theory of purchasing power parity (PPP),the Canadian-U.S.exchange rate in 2012 should have been ________,meaning that the actual Canadian dollar in that year was ________ relative to its PPP value.

The Table Below Shows Indexes for the Price Levels for Canada