Table 13-2

-Refer to Table 13-2. Which currency(ies) is(are) less valuable than predicted by the doctrine of purchasing-power parity?
A) boloviano and dinar
B) yen and kroner
C) baht and kroner
D) baht

Question

Table 13-2
 
-Refer to Table 13-2. Which currency(ies) is(are) less valuable than predicted by the doctrine of purchasing-power parity?
A) boloviano and dinar 
B) yen and kroner 
C) baht and kroner 
D) baht

Quizplus · Accepted Answer

The doctrine of purchasing-power parity suggests that exchange rates should adjust so that the price of a basket of goods is the same in different countries. However, the exchange rate of the baht is lower than predicted by the doctrine, indicating that it is less valuable than expected. The other currencies (boliviano, dinar, yen, and kroner) are not mentioned as having exchange rates that deviate from the predicted value.

Table 13-2 -Refer to Table 13-2. Which Currency(ies) Is(are) Less Valuable Than