provide the answers for the true or flase. When a country's currency depreciates,...
80.2K
Verified Solution
Link Copied!
Question
Accounting
provide the answers for the true or flase.
When a country's currency depreciates, foreign goods become more expensive. A foreign exchange market is also an over-the-counter (OTC) market because there is no single defined location for it and a large part of funds are traded electronically. If a country wants to boost its exports, it should devalue its currency. If the rate between the Australian dollar and the US dollar is USS0.9256/AS, it can also be written as A$1.4014/USS. The essential difference between absolute PPP and relative PPP is that the absolute PPP looks at the spot rate based on absolute price levels, whereas the relative PPP looks at the changes in the spot rate by the relative changes in price levels/inflation rates in two countries
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
