According to the purchasing power parity, when the Japanese inflation rate is less than the Australian inflation rate, Japanese prices are:Question 5Answera.rising at the same rate as Australian prices.b.rising more slowly than Australian prices.c.rising faster than Australian prices.d.not rising.

Multiple Select QuestionSelect all that applyIf the inflation rate in China is rising much faster than the rate in Japan, what would be the effects on the demand for each country's goods and currency?Multiple select question.The demand for Japanese goods will rise in China causing the demand for the Japanese currency to fall.The demand for Chinese goods will fall in Japan causing the supply of Chinese currency to fall.The demand for Chinese goods will rise in Japan causing the supply of Chinese currency to rise.The demand for Japanese goods will rise in China causing the demand for the Japanese currency to rise.

If the price level in Japan is 3.0, the price level in Australia is 6.0, and it costs 50 Yen to buy one Australian dollar, then the real exchange rate between Australia and Japan (the price of domestic goods in terms of Japanese goods) is

When the Chinese yuan is appreciating against the Australian dollar, if the relative purchasing power parity holds, then this suggests that: Question 4 Answer a. the Australian inflation rate is equal to the Chinese interest rate. b. the Australian inflation rate is higher than the Chinese interest rate. c. the Australian inflation rate is lower than the Chinese inflation rate. d. the Australian inflation rate is higher than the Chinese inflation rate.

The demand for yen in exchange for dollars will increase​ if, ceteris​ paribus: a. the desirability of investing in Japan falls. b. speculators think the value of the yen relative to the dollar will fall. c. Japanese interest rates increase relative to interest rates in other countries. d. income in Australia falls.

If the Japanese yen depreciates against the Australian dollar:Question 10Select one:a.Japanese businesses gain by a rise in the dollar price of exports to Australiab.Japanese consumers gain by a fall in the yen price of Australian exports to Japanc.Japanese consumers lose on account of a rise in the yen price of Australian exports to Japand.Australian consumers lose on account of a rise in the dollar price of Japanese exports to Australia