In September 2021, you needed 52 7 percent more pesos to buy one U.S dollar than you had needed in September 2011. Over the same time period, the consumer price index in Mexico increased 51.1 percent and the consumer price index in the U.S increased 20.9 percent. Are these data consistent with the theory of purchasing power parity? O A. No, because the difference between the percentage change in the exchange rate, and the diference in the inflation rates is more than 5%. O B. Yes, because the difference between the percentage change in the exchange rate, and the difference in the inflation rates is less than 5%. OC, Yes, because both countries had inflation and the exchange rate rose. OD. No, because both countries had inflation and the exchange rate rose

In September 2021, you needed 52 7 percent more pesos to buy one U.S dollar than you had needed in September 2011. Over the same time period, the consumer price index in Mexico increased 51.1 percent and the consumer price index in the U.S increased 20.9 percent. Are these data consistent with the theory of purchasing power parity? O A. No, because the difference between the percentage change in the exchange rate, and the diference in the inflation rates is more than 5%. O B. Yes, because the difference between the percentage change in the exchange rate, and the difference in the inflation rates is less than 5%. OC, Yes, because both countries had inflation and the exchange rate rose. OD. No, because both countries had inflation and the exchange rate rose

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 8PA

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