Question

The percentage the dollar cost will have gone up is negative 1.135−1.135​%. ​(Round to three decimal​...

The percentage the dollar cost will have gone up is negative 1.135−1.135​%. ​(Round to three decimal​ places.) What the answer to the multiple choice question? Why has the dollar cost changed by this​ percentage?  ​(Select the best choice​ below.) A. The dollar cost has risen by the U.S. dollar inflation rate. This is a result of​ Theresa's estimation of the present suite costs and the exchange rate changing in proportion to inflation​ (relative purchasing power​ parity). B. The dollar cost has risen by the U.S. dollar inflation rate. This is a result of​ Theresa's estimation of the future suite costs and the exchange rate not changing in proportion to inflation​ (relative purchasing power​ parity). C. The dollar cost has risen by the Malaysian ringgit inflation rate. This is a result of​ Theresa's estimation of the future suite costs and the exchange rate changing in proportion to inflation​ (relative purchasing power​ parity). D. The dollar cost has risen by the U.S. dollar inflation rate. This is a result of​ Theresa's estimation of the future suite costs and the exchange rate changing in proportion to inflation​ (relative purchasing power​ parity).

Homework Answers

Answer #1

option c

The dollar cost has risen by the Malaysian ringgit inflation rate. This is a result of Theresa's estimation of the future suite costs and the exchange rate changing in proportion to inflation

Relative purchase power

Relative purchasing power is the power of money expressed in the terms of number of goods or services that one unit can buy, and which can be reduced by inflation.
RPPP suggests that countries with higher rates of inflation will have a devalued currency.

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